Research Analysts

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Research Analysts

A research analyst collects, analyzes, and interprets data about companies, industries, securities, or other assets to inform investment and business decisions. Their work typically culminates in reports that summarize findings and often include recommendations such as “buy,” “sell,” or “hold.”

What research analysts do

  • Gather and clean quantitative and qualitative data from public filings, market feeds, industry reports, and internal databases.
  • Build financial models and valuation analyses to assess company or asset performance.
  • Produce written reports and presentations that summarize findings, risks, and investment recommendations.
  • Monitor news, earnings releases, and industry trends to update forecasts and investment theses.
  • Communicate results to portfolio managers, traders, clients, or other stakeholders.

Buy-side vs. sell-side

  • Buy-side analysts work for institutional investors (hedge funds, mutual funds, pension funds). Their research directly informs the firm’s investment decisions and portfolio construction.
  • Sell-side analysts work for brokerages and investment banks. Their research is often distributed to clients and used to generate trading or underwriting business; it can also serve marketing purposes.
  • Buy-side roles tend to emphasize proprietary decision support; sell-side roles may involve broader client-facing reporting and higher public visibility.

Typical employers

  • Asset management firms (hedge funds, mutual funds)
  • Investment banks and brokerages
  • Insurance companies
  • Pension funds
  • Corporations with strategic/valuation needs
  • Independent research boutiques and consultancies

Qualifications and certifications

  • Common academic backgrounds: bachelor’s degree in finance, economics, accounting, mathematics, or a related field. Advanced degrees (MS, MBA) are common for senior roles.
  • Professional credentials often pursued: Chartered Financial Analyst (CFA).
  • Securities licenses that may be required in certain roles/regions: Series 86/87 (research), Series 7 (general securities), Series 63 (state registration). Licensing requirements depend on employer and local regulators.

Skills, tools, and methods

  • Quantitative skills: financial modeling, valuation, statistics.
  • Technical tools: Excel for modeling; SQL for data extraction; R or Python for automation, regressions, and visualization.
  • Soft skills: clear written reports, presenting findings, and explaining complex analysis to nontechnical stakeholders.
  • Methods: fundamental analysis, ratio and trend analysis, scenario and sensitivity analysis, and data-driven backtesting.

Career considerations

  • Compensation varies by employer and experience. Median total pay is commonly reported in the six figures but ranges widely by location, firm type, and seniority.
  • Work can be fast-paced and deadline-driven; roles often require continual learning, strong attention to detail, and the ability to manage pressure around earnings seasons and market-moving events.

Research analyst vs. financial analyst

  • Overlap exists, but generally:
  • Financial analysts focus on broader investment analysis, business valuation, and strategic recommendations within a framework of economic and industry context.
  • Research analysts focus more on data collection, empirical modeling, and producing objective, evidence-based reports that support investment or business decisions.

How to become a research analyst

  1. Build a quantitative foundation with relevant coursework or a degree.
  2. Gain practical experience through internships or junior analyst roles.
  3. Develop technical skills (Excel, SQL, Python/R) and learn valuation/modeling techniques.
  4. Pursue certifications (CFA) and any required securities licenses based on the role.
  5. Network and demonstrate a track record of clear analysis and accurate, well-supported recommendations.

Bottom line

Research analysts play a central role in converting raw data into actionable insights for investors and businesses. Success in the role combines quantitative rigor, technical proficiency, clear communication, and the appropriate qualifications or licenses for the regulatory environment.