In 2024, the average base salary for a research analyst is $90,838, anad ranges anywhere between $68,000 and $125,000, according to Glassdoor. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.
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Using statistical and other analytical tools, you’ll transform the raw data into meaningful information that can be easily understood by others. You’ll be responsible for creating reports and presentations that present your findings and recommendations to stakeholders, which may include executives or policymakers. As a research analyst, you are highly skilled in math and statistics and have a good understanding of business and consumer behavior. This skill set comes with a range of education and experience, as well as an understanding of your industry.
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For example, an analyst might focus on industrial businesses (e.g. aerospace and defense) or the consumer goods sector (e.g. food and beverages) and will learn about the industry as well as company-specific information. A research analyst is someone who researches companies and financial markets to generate investment ideas. Typically analysts are seeking investment opportunities by researching companies whose shares or bonds could be mispriced by the market. Those who wish to switch their careers from a different financial role, such as investment banking into equity research could do so given the high transferable skills. The primary difference is that those with prior experience will tend to ascend faster through the hierarchy. Becoming a research analyst will provide professionals with a great deal of career flexibility.
Experience as a research analyst can be an excellent way of opening doors into a wide variety of other careers, including in company management, private equity, or portfolio management. Environmental, social and governance (ESG) concerns are becoming increasingly important topics in this day and age. This is particularly relevant when discussing buy-side analysts due to the amount of transparency that is now required. Those holding an ESG certification will be able to appreciate the environmental impacts of their recommendations while also being capable of assessing any potential risks that may be present. It’s worth bearing in mind that the market for sell-side analysts has slightly dried up in recent years. This is primarily due to an increase in the number of regulations that have been put in place, such as MiFID II.
Research Analyst Qualifications
- From a broad perspective, the role of research analyst can be used to describe any individual who collects and interprets data, and presents their findings in a clear way to help guide any decisions that need to be made by an organization.
- Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.
- It’s a profession that offers the opportunity to unearth valuable insights and drive strategic decisions.
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Enroll on the Research Analyst micro degree and get the same training we provide to sell-side and buy-side research firms in some of the largest global investment banks. You will master key technical skills, learn from real case studies and an expert interview with an equity analyst. A. Research analysts collect and analyze data to provide insights and recommendations for decision-making. They work across various industries, specializing in finance, healthcare, or market research.
Certain fields, such as healthcare, finance, and technology, demand particularly strongly for Research Analysts. For instance, the healthcare industry requires analysts to interpret patient care, treatment outcomes, and operational efficiency data. At the same time, the finance sector relies on analysts for market trends, investment opportunities, and risk management.
In a sell-side firm, such as a brokerage or a bank, an equity research analyst typically produces reports and recommendations for the firm’s sales agents. The agents then go on to use the information to sell investments to their clients and the general public. Professional business and interpersonal skills, such as communication and report writing, are also critical for this role. As a conclusion, the future of research analysis is exciting, with many opportunities for those who can adapt to new technologies and techniques while maintaining ethical standards. The demand for skilled research analysts is likely to continue growing as data-driven decision-making becomes even what is research analyst more prevalent in all industries.
