A Guide to Equity Analyst Interview Questions with Sample Answers
Preparing for an equity analyst interview? Review the most frequent equity analyst interview questions with sample answers and advice. Get more insight with a relevant quote, stat and anecdote on acing your equity research job interview.
Industry Knowledge
As you’re being interviewed for a specialized role in equity research and financial services, hiring managers will evaluate your knowledge of relevant topics. Focus on showcasing your understanding across key areas like:
- Company/industry analysis
- Financial modelling/valuation
- SEC filings and financial statements
- Economic trends and forecasts
- Investor presentations/calls
Common Questions
Some questions that frequently assess this knowledge include:
- “Walk me through your investment process evaluating a stock”
- “Describe how you would build a 3-statement model”
- “What key metrics do you focus on in company filings?”
- “Where do you see growth/risks for this sector?”
Strong Answers
Frame responses clearly demonstrating your real work experience. For example:
- “Previously when covering the software sector, first I would…”
- “On my last project analyzing XYZ company, I built a DCF model…”
- “When evaluating 10-Ks, a few key items I would focus on are…”
Back statements with specific examples vs. vague claims of expertise.
Communication and Influence
Hiring managers also evaluate your client-facing skills critical in analyst roles, via questions like:
- “How would you persuade an investor your stock call is right?”
- “If your buy rating underperformed, how would you manage the relationship?”
- “Describe a situation influencing management or investor opinions.”
Tips for strong communication-focused responses:
- Bullet1. Demonstrate client focus: “If my call initially underperformed, I would meet the client to provide an update…”
- Bullet2. Show accountability in influencing decisions: “If I felt an alternative perspective was needed, I took the initiative to…”
- Bullet3. Explain balanced, data-backed arguments: “I laid out my bull/bear case using both quantitative data and qualitative insights…”
As billionaire investor Charles Ellis said: “If you aren’t thinking about the linkage between communication and influence, you probably aren’t accomplishing very much.”
Equity analysts must determine key insights from complex data and communicate those effectively. Show you have the maturity and influencing ability to own calls while incorporating investor input and new information appropriately.
Behavioral Fit
Cultural fit questions may explore your work style, values and mindset:
- “Tell me about a time you faced a conflict on a team.”
- “Why are you interested in equity research vs. banking/sales?”
I’ve personally found that being authentic goes a long way. For example, in one of my equity research interviews, when asked about my vision for success I responded:
“I’m driven by opportunities to learn – whether that’s researching new models, taking investor calls post-earnings or receiving market feedback on my analysis. Continuing to develop expertise through hard-fought lessons feels more rewarding to me than any particular title or short-term P&L goal.”