Equitable Holdings
EQH
$48.90
+0.31%
Equitable Holdings, Inc. is a diversified financial services company providing retirement, asset management, and wealth management solutions to individual and institutional clients through its Retirement, Asset Management (AllianceBernstein), and Wealth Management segments. As a major player in the insurance and asset management industry, Equitable leverages its scale and brand to offer annuities, retirement plans, and investment advisory services. The current investor narrative centers on the company's strategic focus on fee-based businesses, capital return initiatives including buybacks and dividends, and the impact of market volatility on its investment portfolio and earnings. Recent news highlights substantial share repurchases, signaling management confidence and providing EPS tailwinds despite mixed operational performance.…
EQH
Equitable Holdings
$48.90
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Investment Opinion: Should I buy EQH Today?
Based on the analysis, EQH is rated a Buy. The consensus analyst rating is 'Strong Buy' with an average target price of $61.91, implying 26.6% upside. The thesis is that the company's earnings recovery, strong cash flow, and undervaluation relative to sales and peers will drive share price appreciation. Supporting evidence includes a forward PE of 5.42x, a PS ratio of 1.22x (19% below industry average), TTM free cash flow of $807 million, and a PEG ratio of 0.04, all indicating significant undervaluation. The primary risks are earnings volatility and liquidity concerns, which could invalidate the thesis if the company fails to sustain profitability. This Buy would be upgraded if the stock pulls back to $45 without a deterioration in fundamentals, or downgraded if revenue growth turns negative again. Overall, EQH is undervalued relative to its history and peers, offering a favorable risk/reward.
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EQH 12-Month Price Forecast
The AI model assesses EQH as bullish with medium confidence. The valuation is compelling, with a forward PE of 5.42x and PS ratio of 1.22x, both below historical and peer averages. The earnings recovery in Q1 2026 is a positive signal, but the volatility of past quarters warrants caution. The stance would be upgraded to high confidence if the company delivers two consecutive quarters of positive earnings and revenue growth. Conversely, a downgrade would occur if Q2 2026 shows a return to losses or if the stock fails to hold above $45.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Equitable Holdings's 12-month outlook, with a consensus price target around $62.00 and implied upside of +26.8% versus the current price.
Average Target
$62.00
0 analysts
Implied Upside
+26.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$52 - $68
Analyst target range
Equitable Holdings has coverage from 11 analysts, with a consensus recommendation of 'Strong Buy' (mean rating of 1.33 on a 1-5 scale). The average target price is $61.91, implying an upside of approximately 26.6% from the current price of $48.90. The analyst sentiment is overwhelmingly bullish, with recent actions from firms like Keefe, Bruyette & Woods, Evercore ISI, Jefferies, and Mizuho all maintaining Outperform or Buy ratings. The target price range spans from $52.00 (low) to $68.00 (high), with the low target still implying a 6.3% upside, indicating that even the most bearish analyst sees value. The high target of $68.00 suggests potential for a 39.1% gain, likely assuming continued earnings recovery and multiple expansion. The relatively wide spread between low and high targets (16 points) reflects uncertainty around market conditions and the company's ability to sustain its growth trajectory. Overall, the analyst community is highly optimistic, with no Sell ratings, and the recent upgrades and positive actions suggest confidence in Equitable's strategic direction and capital return program.
Bulls vs Bears: EQH Investment Factors
Equitable Holdings presents a compelling value opportunity with strong analyst support and a clear earnings recovery, but the bear case highlights significant volatility and liquidity concerns. The bull case is currently stronger, driven by the 26.6% upside to the average target, a low PS ratio, and robust cash flow. The most critical tension is whether the Q1 2026 earnings rebound is sustainable or a one-off recovery from a market-driven trough. If the company can maintain profitability and grow revenue, the stock is likely undervalued; if market volatility returns, the negative margins and liquidity issues could resurface.
Bullish
- Strong Q1 2026 Earnings Recovery: Q1 2026 net income surged to $621 million with EPS of $2.16, a dramatic turnaround from the $1.309 billion net loss in Q3 2025. This demonstrates the company's ability to rebound from market-driven volatility and supports the forward PE of 5.42x.
- Analyst Consensus: Strong Buy: With 11 analysts covering, the consensus rating is 'Strong Buy' (mean 1.33) and the average target price is $61.91, implying 26.6% upside from the current $48.90. No sell ratings exist, and recent actions from KBW, Evercore, Jefferies, and Mizuho are all positive.
- Undervalued on Price-to-Sales: The trailing PS ratio of 1.22x is 19% below the industry average of ~1.5x and near the bottom of its historical range (2.1x-10.6x). This suggests the market is pricing in pessimism that may be unwarranted given the earnings recovery.
- Robust Free Cash Flow Generation: TTM free cash flow is $807 million, with Q1 2026 alone contributing $490 million. This cash flow supports the company's dividend (yield 2.64%) and aggressive share buyback program, which provides EPS tailwinds.
Bearish
- Negative TTM Net Margin: The trailing twelve-month net margin is -11.83% and operating margin is -10.23%, dragged down by the massive Q3 2025 loss. This indicates that the company's earnings are highly volatile and susceptible to market swings.
- Revenue Volatility and Concentration: Revenue swung from $1.45 billion in Q3 2025 to $4.23 billion in Q1 2026, showing extreme instability. The Retirement segment dominates, creating concentration risk if that segment underperforms.
- Liquidity Concerns: The current ratio is 0.57, suggesting potential short-term liquidity issues. While insurance companies have different liquidity dynamics, this low ratio could be a red flag for investors.
- Negative 1-Year Price Performance: Despite the recent rally, EQH is down 5.73% over the past year, underperforming the S&P 500's 20.48% gain. Relative strength over 1 year is -26.2%, indicating persistent underperformance.
EQH Technical Analysis
EQH is currently in a strong uptrend, with the stock trading at $48.90 as of August 21, 2026, near the upper end of its 52-week range. The 1-year price change is -5.73%, but the stock has rebounded significantly from its 52-week low of $35.195, now trading at approximately 88.7% of the 52-week range (calculated as (48.90 - 35.195) / (55.15 - 35.195)). This positioning near the highs suggests positive momentum, though the negative 1-year return indicates the stock is still recovering from earlier declines. The stock's beta of 1.092 indicates slightly higher volatility than the market, which is typical for financial services names.
Beta
1.09
1.09x market volatility
Max Drawdown
-35.6%
Largest decline past year
52-Week Range
$35-$55
Price range past year
Annual Return
-5.7%
Cumulative gain past year
| Period | EQH Return | S&P 500 |
|---|---|---|
| 1m | +0.3% | +3.6% |
| 3m | +14.8% | +2.7% |
| 6m | +10.6% | +11.4% |
| 1y | -5.7% | +18.7% |
| ytd | +1.9% | +12.3% |
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EQH Fundamental Analysis
Equitable's revenue trajectory shows a rebound in Q1 2026, with revenue of $4.23 billion, up 8.35% year-over-year, following a volatile 2025 that included a loss-making Q3. The multi-quarter trend is mixed: Q1 2026 revenue was significantly higher than the $3.277 billion in Q4 2025 and $3.904 billion in Q1 2025, but the company experienced a sharp decline in Q3 2025 to $1.45 billion, reflecting market-driven impacts. The growth is driven by the Retirement segment, which generates the majority of revenue, and the Asset Management segment, which benefits from market performance. The company's profitability has improved dramatically, with Q1 2026 net income of $621 million and EPS of $2.16, compared to a net loss of $1.309 billion in Q3 2025. Gross margin in Q1 2026 was 90.69%, up from 88.07% in Q4 2025, indicating strong cost management. However, the trailing twelve-month net margin is -11.83% due to prior losses, and operating margin is -10.23%, reflecting the impact of non-recurring items. The balance sheet shows a debt-to-equity ratio of -88.68 (negative equity due to accounting treatment), which is not meaningful for insurance companies, but the current ratio of 0.57 indicates potential liquidity concerns. Free cash flow for Q1 2026 was $490 million, and the company generated $807 million in TTM free cash flow, which supports its dividend and buyback programs. ROE is 18.65%, indicating strong shareholder returns despite the negative equity.
Quarterly Revenue
$4.2B
2026-03
Revenue YoY Growth
+8.3%
YoY Comparison
Gross Margin
90.7%
Latest Quarter
Free Cash Flow
$807000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is EQH Overvalued?
Given the negative trailing EPS, I selected the price-to-sales (PS) ratio as the primary valuation metric. The trailing PS ratio is 1.22x, while the forward PE is 5.42x, implying the market expects a significant earnings recovery. The EV/Sales ratio is 0.42x, which is low, suggesting the stock is undervalued relative to its revenue generation. Compared to the industry average PS ratio of approximately 1.5x (based on typical insurance diversified peers), EQH trades at a 19% discount, indicating a potential value opportunity. The PEG ratio of 0.04 is extremely low, suggesting the stock is undervalued relative to its growth prospects. Historically, EQH's PS ratio has ranged from 2.1x to 10.6x over the past few years, with the current 1.22x near the bottom of that range, indicating the stock is trading at a significant discount to its own historical valuation. This suggests the market is pricing in pessimistic expectations, but the strong Q1 2026 results and analyst optimism may warrant a re-rating.
PE
-9.9x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 1x~39x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-85.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are significant. The company's earnings are highly volatile, as evidenced by the swing from a $1.309 billion net loss in Q3 2025 to a $621 million profit in Q1 2026. This volatility stems from market-sensitive investments and annuity products, making future earnings unpredictable. The negative TTM net margin of -11.83% and operating margin of -10.23% highlight the impact of these swings. Additionally, the current ratio of 0.57 suggests potential liquidity constraints, though insurance companies often operate with different liquidity metrics. The debt-to-equity ratio of -88.68 is not meaningful due to negative equity, but it underscores the complexity of the balance sheet.
FAQ
The key risks are: 1) Financial risk: Earnings volatility, as evidenced by the $1.309 billion loss in Q3 2025, which could recur if market conditions deteriorate. 2) Market risk: High beta of 1.092 means the stock is more sensitive to market swings, and the 35.56% max drawdown highlights potential losses. 3) Liquidity risk: Current ratio of 0.57 suggests potential short-term liquidity issues. 4) Regulatory risk: Changes in insurance or retirement product regulations could impact the business. The most severe risk is a market downturn leading to another loss-making quarter, which could push the stock down to its 52-week low of $35.20.
The 12-month forecast is bullish, with a base case target of $55-$62 (50% probability) and a bull case target of $62-$68 (30% probability). The bear case target is $35-$45 (20% probability). The most likely scenario is the base case, which assumes continued earnings recovery and revenue growth. The average analyst target of $61.91 aligns with the upper end of the base case. Key assumptions include stable market conditions and successful execution of the capital return program. If the company delivers strong Q2 earnings, the stock could move toward the bull case.
EQH is undervalued based on multiple metrics. The trailing PS ratio of 1.22x is 19% below the industry average of ~1.5x and near the bottom of its historical range (2.1x-10.6x). The forward PE of 5.42x is significantly lower than the market average, suggesting the market expects strong earnings growth. The PEG ratio of 0.04 indicates the stock is deeply undervalued relative to its growth prospects. This valuation implies the market is pricing in pessimistic scenarios that may not materialize, offering a margin of safety for investors.
EQH is a good buy for investors seeking a value opportunity with high upside potential. The analyst consensus is Strong Buy with an average target of $61.91, implying 26.6% upside from the current price of $48.90. The stock trades at a forward PE of 5.42x and a PS ratio of 1.22x, both below industry averages, indicating undervaluation. However, the company's earnings are volatile, as seen in the Q3 2025 loss, so investors should be prepared for potential swings. It is particularly suitable for those with a 12-month horizon and a tolerance for market risk.
EQH is more suitable for medium to long-term investment (2-3 years) due to its earnings volatility and cyclical nature. The stock has a beta of 1.092, indicating higher volatility, which may not suit short-term traders. However, the low valuation and strong cash flow provide a margin of safety for long-term investors. The dividend yield of 2.64% offers income while waiting for capital appreciation. A minimum holding period of 2 years is recommended to ride out market cycles and allow the earnings recovery to fully materialize.