Equitable Holdings (EQH) shares have trended lower over the past month, giving investors a fresh reason to revisit the company’s recent performance. Despite this pullback, long-term returns and underlying growth metrics remain worth watching for anyone interested in the financial sector.
After a strong run last year, Equitable Holdings has recently faced a cooling period, with its share price falling 10.6% over the past month as risk sentiment shifts across the sector. Even so, the company’s 12.1% total shareholder return over the last twelve months and a remarkable 175% over five years suggest long-term momentum remains firmly intact.
With shares coming off their highs but long-term returns staying strong, the big question now is whether Equitable Holdings is trading below its true value or if the recent dip already factors in future growth prospects.
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Most Popular Narrative: 25.9% Undervalued
Compared to its last close of $48.35, the most popular narrative puts Equitable Holdings' fair value closer to $65, setting expectations for substantial upside versus current market prices. This context reframes recent volatility and leads directly into the key catalyst highlighted within the narrative itself.
Product innovation (notably in RILAs, fee-based, and protection-focused annuities), along with first-mover advantages through partnerships with major asset managers such as BlackRock, AB, and JPMorgan, position Equitable to capture premium pricing, differentiate from competitors, and access new markets. This is expected to improve average margins and support long-term earnings growth.
Curious what ambitious financial leaps justify this bullish target? There is a bold earnings and margin transformation story reflected here, sustained by strategic partnerships and rapid product pivoting. What unusual assumptions unlock this premium? Click through to unpack the numbers that convinced the consensus.
However, challenges such as increased competition in retirement solutions and possible outflows in asset management could pressure Equitable Holdings’ future profitability and growth.
Using the price-to-earnings ratio as a reality check, Equitable Holdings looks far from a bargain. Trading at 33.8 times earnings, it stands well above both peer (15.8x) and industry (15.7x) averages. It is also higher than the fair ratio of 25.9x, which the market could drift toward. This gap points to a hefty valuation premium and raises questions about the risk investors may be shouldering at current prices.
If you are skeptical of the consensus or prefer hands-on analysis, you can independently assess the numbers and craft a narrative in just minutes, then Do it your way
A great starting point for your Equitable Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Equitable Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
