Equitable Holdings
EQH
$48.00
+0.73%
Equitable Holdings, Inc. is a diversified financial services company providing 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 leverages its scale and brand to offer annuities, retirement plans, and advisory services, distinguishing itself through a balanced mix of fee-based and spread-based revenue streams. The current investor narrative centers on the company's strategic transformation, including a significant share repurchase program announced in early 2026, which signals management confidence and aims to boost EPS, while the market also weighs the impact of recent quarterly earnings volatility and the company's ability to sustain growth in a competitive financial services landscape.…
EQH
Equitable Holdings
$48.00
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Investment Opinion: Should I buy EQH Today?
Based on the analysis, EQH is rated a Buy. The strong Q1 2026 earnings recovery, with revenue growth of 8.35% and EPS of $2.16, combined with a forward PE of 5.34x and a PEG of 0.04, suggests the stock is undervalued. The analyst consensus is Strong Buy with an average target of $60.82, implying 27.6% upside. The buyback program provides additional support.
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EQH 12-Month Price Forecast
The AI assessment is bullish, driven by the attractive forward valuation and the strong earnings recovery in Q1 2026. The main risks are the high debt levels and historical earnings volatility, which warrant a medium confidence. If the company continues to deliver strong earnings and reduces debt, the stance could be upgraded to high confidence. Conversely, any significant earnings miss or market downturn would lead to a downgrade.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Equitable Holdings's 12-month outlook, with a consensus price target around $60.82 and implied upside of +26.7% versus the current price.
Average Target
$60.82
0 analysts
Implied Upside
+26.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$50 - $68
Analyst target range
The target price range spans from a low of $50.00 to a high of $68.00, with the high target assuming a successful execution of the buyback program and sustained revenue growth, potentially leading to EPS of $13.02, while the low target reflects concerns about market volatility and potential margin compression. The wide spread of $18 between low and high targets signals moderate uncertainty, but the fact that even the low target is above the current price suggests analysts see limited downside. Recent ratings have been consistently positive, with no downgrades in the past three months, reinforcing the bullish consensus and suggesting that the stock may be undervalued relative to its earnings potential.
Bulls vs Bears: EQH Investment Factors
Equitable Holdings presents a mixed picture: strong recent earnings recovery and attractive forward valuation are offset by a history of volatility and negative trailing profitability. The bull case is supported by a strong buyback program, analyst optimism, and a forward PE of 5.34x, while the bear case highlights the negative TTM EPS, high leverage, and underperformance relative to the market. Currently, the evidence slightly favors the bull case given the strong Q1 2026 results and the potential for continued recovery, but the key tension is whether the company can sustain its earnings momentum and reduce its debt burden. If the company delivers on its forward EPS estimates, the stock could re-rate significantly higher, but any setback could lead to a sharp decline.
Bullish
- Strong Q1 2026 earnings rebound: Q1 2026 revenue grew 8.35% YoY to $4.23B, with EPS of $2.16 and net income of $621M, a sharp recovery from the prior two quarters' losses. This demonstrates the company's ability to generate strong earnings when markets stabilize.
- Analyst consensus is Strong Buy: With 11 analysts, the average target price is $60.82, implying 27.6% upside from the current price of $47.65. The low target of $50 is still above the current price, indicating limited downside risk.
- Attractive forward valuation: The forward PE is 5.34x based on estimated EPS of $11.81, a significant discount to the broader market. The PEG ratio of 0.04 suggests the stock is undervalued relative to its expected growth.
- Significant share buyback program: The company announced a major buyback in early 2026, signaling management confidence and providing EPS tailwinds. This can drive per-share value even if earnings remain flat.
Bearish
- Negative trailing twelve-month EPS: The TTM EPS is -$0.10, and the trailing PE is -9.87x, reflecting the significant losses in Q2 and Q3 2025. This volatility in earnings may deter some investors.
- High debt-to-equity ratio: The debt-to-equity ratio is -88.68, indicating negative equity, which is a red flag for financial stability. This could limit financial flexibility and increase risk.
- Underperformance vs. market: Over the past year, EQH is down 7.21% while the S&P 500 is up 18.19%, underperforming by over 25 percentage points. This suggests persistent negative sentiment.
- Revenue volatility: Revenue has been highly volatile, with Q3 2025 dropping to $1.45B from $3.9B in Q1 2025, a decline of over 60%. This makes forecasting difficult and may indicate sensitivity to market conditions.
EQH Technical Analysis
The prevailing price trend for Equitable Holdings over the past year has been a recovery from a significant drawdown, with the stock currently trading at $47.65, down 7.21% from a year ago but up 12.99% over the last three months. The stock sits at 86.3% of its 52-week range (between $35.195 low and $55.24 high), indicating a strong rebound from the lows but still below the highs, suggesting momentum is building but not yet at overbought levels. The 52-week low was reached in March 2026, and the subsequent rally has been robust, positioning the stock in the upper half of its range, which often reflects improving investor sentiment and a potential continuation of the uptrend if resistance levels are cleared.
Beta
1.09
1.09x market volatility
Max Drawdown
-37.0%
Largest decline past year
52-Week Range
$35-$55
Price range past year
Annual Return
-4.2%
Cumulative gain past year
| Period | EQH Return | S&P 500 |
|---|---|---|
| 1m | +5.2% | +1.7% |
| 3m | +9.0% | +4.7% |
| 6m | +7.1% | +10.4% |
| 1y | -4.2% | +21.9% |
| ytd | +0.1% | +11.1% |
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EQH Fundamental Analysis
Equitable Holdings reported revenue of $4.23 billion in Q1 2026, representing a year-over-year growth of 8.35%, a notable acceleration from the previous quarter's revenue of $3.277 billion, which had declined sequentially. The multi-quarter trend shows volatility, with Q3 2025 revenue dropping to $1.45 billion due to market-related impacts, but the latest quarter's growth suggests a recovery in fee income and investment returns. The company's gross margin for Q1 2026 was 90.69%, up from 88.07% in Q4 2025, indicating strong cost management and a favorable product mix, though the operating margin of 20.97% in Q1 2026 reflects a significant improvement from the negative margins in the prior two quarters, driven by higher investment income and lower expenses.
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 that Equitable Holdings reported a net loss on a trailing twelve-month basis (EPS of -$0.10), the price-to-sales (PS) ratio is the primary valuation metric, currently at 1.22x, which is lower than the industry average of 2.5x for diversified insurance, indicating a potential undervaluation. The forward PE ratio of 5.34x, based on estimated EPS of $11.81, suggests the market expects a strong earnings rebound, and the PEG ratio of 0.04 implies significant growth expectations. Compared to the sector, Equitable's PS ratio is at a 51% discount to the industry average, which may be justified by its lower net margins (-11.83%) and the recent earnings volatility, but the forward metrics suggest the market is pricing in a recovery that could lead to multiple expansion.
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 debt-to-equity ratio of -88.68 indicates negative equity, which is a major red flag and could restrict access to capital or increase borrowing costs. The TTM net margin of -11.83% and operating margin of -10.23% reflect the impact of the large losses in Q2 and Q3 2025, which were driven by market-related charges. The company's revenue is highly volatile, as seen in the drop from $3.9B in Q1 2025 to $1.45B in Q3 2025, making earnings predictability low. Additionally, the current ratio of 0.57 suggests potential liquidity concerns, though this is common in the insurance industry.
FAQ
The key risks include: 1) Financial risk: high debt-to-equity ratio of -88.68 and negative equity, which could lead to financial distress. 2) Earnings volatility: the company has experienced significant quarterly losses, as seen in Q3 2025 with a net loss of $1.31B. 3) Market risk: the stock has a beta of 1.094 and has underperformed the market by over 25% in the past year. 4) Competitive risk: the insurance and asset management industries are competitive, and regulatory changes could impact profitability. The most severe risk is a market downturn that could push the stock to its 52-week low of $35.20, a 26% decline.
The 12-month forecast is moderately bullish. In the base case (50% probability), the stock is expected to trade around the analyst average target of $60.82, implying 27.6% upside. In the bull case (30% probability), it could reach $68, and in the bear case (20% probability), it could fall to $35.20. The most likely scenario is the base case, which assumes continued recovery and stable market conditions. The key assumption is that the company delivers on its forward EPS estimate of $11.81.
EQH appears undervalued based on forward metrics. The forward PE of 5.34x is well below the market average, and the PS ratio of 1.22x is at a 51% discount to the industry average of 2.5x. The PEG ratio of 0.04 suggests the stock is significantly undervalued relative to its expected growth. However, the negative trailing EPS and net margin indicate that the market is pricing in a recovery. If the recovery fails to materialize, the stock could be fairly valued or even overvalued.
EQH appears to be a good buy for investors with a higher risk tolerance, given the strong analyst consensus (Strong Buy) and the 27.6% upside to the average target price of $60.82. The forward PE of 5.34x is attractive, and the Q1 2026 earnings recovery is encouraging. However, the high debt-to-equity ratio and historical earnings volatility are significant risks. The stock is a good buy if you believe the company can sustain its recovery and execute its buyback program. If you are risk-averse, it may be better to wait for more evidence of stability.
EQH is more suitable for long-term investment, given its recovery potential and low valuation. The stock has a beta of 1.094, indicating higher volatility, which may not suit short-term traders. The dividend yield of 2.64% provides some income, but the payout ratio is negative, so dividend sustainability is uncertain. For long-term investors, the stock could benefit from the buyback program and earnings growth. A minimum holding period of 3-5 years is recommended to allow the recovery to play out and for the debt situation to improve.