Equitable Holdings
EQH
$53.09
+0.55%
Equitable Holdings, Inc. is a diversified financial services company that provides retirement, asset management, and wealth management solutions to individual and institutional clients, operating through three primary segments: Retirement, Asset Management (AllianceBernstein), and Wealth Management. As a major player in the insurance and asset management industry, Equitable distinguishes itself through its integrated platform that combines annuity products, investment management, and advisory services, backed by a strong brand heritage. The current investor narrative centers on the company's strategic focus on fee-based businesses, capital return initiatives including buybacks and dividends, and the successful integration of its wealth management capabilities, while navigating the challenges of a volatile interest rate environment and market fluctuations that impact its spread-based retirement products.…
EQH
Equitable Holdings
$53.09
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Investment Opinion: Should I buy EQH Today?
Based on the analysis, EQH is rated a Buy. The company has demonstrated a strong earnings recovery in Q1 2026, with revenue growth of 8.35% YoY and a net margin of 14.68%, a significant improvement from the prior year. The forward PE of 5.80 is attractively low, and the PEG ratio of 0.04 suggests the stock is undervalued relative to its growth prospects. Analyst consensus is Strong Buy with an average target price of $60.82, implying 16.6% upside from the current price of $52.17.
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EQH 12-Month Price Forecast
The AI assessment is bullish on EQH, driven by the company's strong earnings recovery, attractive valuation, and positive analyst sentiment. The forward PE of 5.80 suggests the stock is undervalued, and the PEG ratio of 0.04 indicates significant growth potential relative to its price. However, the medium confidence reflects the historical earnings volatility and sensitivity to market conditions. If the company can sustain its recent performance and avoid the losses seen in 2025, the stock has substantial upside. Key developments to watch include quarterly earnings, interest rate movements, and the success of its capital return program.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Equitable Holdings's 12-month outlook, with a consensus price target around $61.55 and implied upside of +15.9% versus the current price.
Average Target
$61.55
0 analysts
Implied Upside
+15.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$52 - $68
Analyst target range
The target price range spans from $50.00 (low) to $68.00 (high), indicating a wide spread of $18, which suggests moderate uncertainty in the market's expectations. The high target of $68 implies a 30.3% upside, likely assuming continued strong execution in fee-based businesses and successful capital deployment. The low target of $50, slightly below the current price, could reflect concerns about market volatility impacting annuity spreads or a potential economic downturn. Recent ratings from major firms like Keefe, Bruyette & Woods, Evercore ISI, and Jefferies have all been reaffirmed as positive, with no downgrades, signaling sustained analyst confidence in the stock.
Bulls vs Bears: EQH Investment Factors
Equitable Holdings presents a compelling bull case with strong Q1 2026 earnings, a deeply discounted forward PE of 5.80, and a Strong Buy consensus from analysts. However, the bear case highlights significant earnings volatility, underperformance versus the market, and sensitivity to interest rates. Currently, the bull case has stronger evidence, as the company has demonstrated a clear turnaround in profitability and the valuation is undemanding. The most important tension is whether the company can sustain its recent earnings recovery and avoid the market-driven losses that plagued it in 2025. If it can, the stock offers substantial upside; if not, the low valuation may be a value trap.
Bullish
- Strong Q1 2026 earnings beat: Q1 2026 revenue grew 8.35% YoY to $4.23B, with net income of $621M and EPS of $2.16, a massive improvement from the prior year's net margin of 1.61%. This demonstrates the company's ability to convert revenue into profits efficiently.
- Attractive forward valuation: Forward PE of 5.80 is significantly below the market average, suggesting the stock is undervalued relative to its earnings growth potential. The PEG ratio of 0.04 further supports this, indicating the stock is trading at a deep discount to its growth rate.
- Analyst consensus is Strong Buy: With a mean recommendation of 1.33 (Strong Buy) and an average target price of $60.82, the stock has 16.6% upside from the current price of $52.17. All recent ratings from major firms like KBW, Evercore ISI, and Jefferies are positive, with no downgrades.
- High gross margin business model: Gross margin of 90.69% in Q1 2026 reflects the high-margin nature of fee-based businesses, which dominate Equitable's revenue mix. This provides a strong foundation for profitability and cash flow generation.
Bearish
- Volatile earnings history: The company has experienced significant earnings volatility, with losses in Q2 and Q3 2025 (EPS of -1.21 and -4.47, respectively) due to market impacts on annuity spreads. This makes forward earnings less predictable and could lead to future disappointments.
- Underperformance vs. market: Over the past year, EQH returned only 1.99% compared to the S&P 500's 21.46%, and relative strength over 1 year is -19.47%. This suggests the stock has lagged the broader market, potentially due to sector-specific headwinds.
- High debt-to-equity ratio: The debt-to-equity ratio of -88.68 is negative, indicating that the company has more liabilities than equity, which is typical for insurance companies but still poses financial risk. This could limit financial flexibility in a downturn.
- Sensitivity to interest rates: As an insurance and annuity provider, Equitable's spread-based products are highly sensitive to interest rate changes. A prolonged low-rate environment could compress margins and reduce profitability, as seen in the 2025 losses.
EQH Technical Analysis
Equitable Holdings' stock has demonstrated a robust recovery over the past year, with a 1-year price change of +1.99%, though this underperforms the S&P 500's +21.46% gain. The current price of $52.17 sits at 94.4% of its 52-week range (low of $35.195, high of $55.24), indicating the stock is trading near its highs, reflecting strong momentum and investor confidence. This positioning near the upper end of the range suggests the market is rewarding the company's recent performance, but also raises the risk of overextension if earnings fail to meet elevated expectations.
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
-2.8%
Cumulative gain past year
| Period | EQH Return | S&P 500 |
|---|---|---|
| 1m | +7.3% | +2.9% |
| 3m | +24.7% | +5.0% |
| 6m | +19.6% | +13.9% |
| 1y | -2.8% | +20.4% |
| ytd | +10.7% | +13.8% |
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EQH Fundamental Analysis
Equitable Holdings reported revenue of $4.23 billion in Q1 2026, representing a solid 8.35% year-over-year growth, driven by strong performance across its Retirement and Asset Management segments. The company's gross margin stood at an impressive 90.69%, reflecting the high-margin nature of its fee-based businesses, while operating income reached $887 million, translating to an operating margin of 20.97%. Net income for the quarter was $621 million, with a net margin of 14.68%, a significant improvement from the prior year's Q1 net margin of 1.61%, showcasing the company's ability to convert revenue into profits efficiently.
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 company's positive net income of $621 million in the latest quarter, the PE ratio is the most appropriate valuation metric. The trailing PE is negative at -9.87 due to historical losses, but the forward PE is attractively low at 5.80, indicating the market expects substantial earnings growth. This wide gap between trailing and forward multiples suggests investors are pricing in a strong earnings recovery, supported by the company's recent profitability and growth trajectory.
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 & Operational Risks: Equitable's financials show significant volatility, with net income swinging from a loss of $1.31B in Q3 2025 to a profit of $621M in Q1 2026. This volatility is driven by market impacts on annuity spreads and investment gains, making earnings unpredictable. The company's debt-to-equity ratio is negative at -88.68, indicating a high level of liabilities relative to equity, which is common for insurers but increases financial risk. Additionally, the current ratio of 0.57 suggests potential liquidity challenges, as current liabilities exceed current assets. The company's reliance on fee-based income and spread-based products exposes it to both market and interest rate risks, as evidenced by the 2025 losses when market conditions deteriorated.
FAQ
The key risks of holding EQH include: 1) Earnings volatility, as seen in 2025 when the company reported significant losses due to market conditions; 2) Interest rate sensitivity, as changes in rates can impact annuity spreads and investment income; 3) Market risk, with a beta of 1.09 indicating higher volatility than the market; 4) Liquidity risk, as the current ratio of 0.57 suggests potential short-term solvency concerns. These risks are ranked by severity, with earnings volatility being the most significant, followed by interest rate sensitivity. Investors should monitor these factors closely.
The 12-month forecast for EQH is positive, with a base case target of $60.82 (average analyst target), representing 16.6% upside from the current price of $52.17. The bull case target is $68, implying 30.3% upside, while the bear case target is $35.20, implying a 32.5% downside. The base case has a 50% probability, reflecting expectations of continued growth and stable profitability. The most likely scenario is the base case, assuming the company maintains its recent earnings momentum and market conditions remain stable. Investors should watch for quarterly earnings and interest rate movements to adjust their expectations.
Based on the forward PE of 5.80, EQH is significantly undervalued compared to the broader market and its own historical valuation. The PEG ratio of 0.04 further indicates that the stock is trading at a deep discount to its expected earnings growth. The PS ratio of 1.22 is also reasonable for a financial services company. The market appears to be pricing in a high level of risk due to the company's past earnings volatility, but if the company can sustain its recent performance, the stock has substantial upside. Overall, EQH is undervalued relative to its growth prospects.
EQH appears to be a good buy for investors with a medium-to-long-term horizon, given its attractive forward PE of 5.80 and strong analyst consensus of Strong Buy. The stock offers a 16.6% upside to the average analyst target of $60.82, and the dividend yield of 2.64% provides income. However, the stock is not without risks, including earnings volatility and sensitivity to interest rates. For investors who can tolerate these risks and believe in the company's turnaround, EQH is a compelling value opportunity. It is particularly suitable for those seeking undervalued financial stocks with growth potential.
EQH is better suited for long-term investment, given its attractive valuation and potential for earnings growth. The stock's beta of 1.09 indicates moderate volatility, making it less suitable for short-term trading. The company's dividend yield of 2.64% provides income, and the forward PE of 5.80 suggests significant upside over the long term. However, the earnings volatility and sensitivity to interest rates mean that short-term price movements can be unpredictable. A suggested minimum holding period is 3-5 years to allow the company to execute its strategic initiatives and realize its growth potential. For investors with a long-term horizon, EQH offers a compelling risk-reward profile.