Equity Stock Buy Hold or Sell Recommendation

EQR -  USA Stock  

USD 73.76  2.06  2.72%

Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding Equity Residential is 'Strong Hold'. Macroaxis provides Equity Residential buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EQR positions. The advice algorithm takes into account all of Equity Residential's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Equity Residential's buy-and-hold perspective. Continue to Equity Residential Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Equity and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Equity Residential.

Execute Equity Residential Buy or Sell Advice

The Equity recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Equity Residential. Macroaxis does not own or have any residual interests in Equity Residential or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Equity Residential's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Equity ResidentialBuy Equity Residential
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Equity Residential has a Risk Adjusted Performance of (0.16), Jensen Alpha of (0.1), Total Risk Alpha of (0.037281) and Treynor Ratio of (0.26)
Macroaxis provides unbiased investment recommendation on Equity Residential that should be used to complement current analysts and expert consensus on Equity Residential. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Equity Residential is not overpriced, please confirm all Equity Residential fundamentals, including its gross profit, short ratio, current liabilities, as well as the relationship between the total debt and market capitalization . Given that Equity Residential has a price to earning of 26.55 X, we urge you to verify Equity Residential market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Equity Residential Trading Alerts and Improvement Suggestions

Equity Residential generated a negative expected return over the last 90 days
The company has 8.46 B in debt with debt to equity (D/E) ratio of 0.75, which is OK given its current industry classification. Equity Residential has a current ratio of 0.52, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Equity Residential until it has trouble settling it off, either with new capital or with free cash flow. So, Equity Residential's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Equity Residential sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Equity to invest in growth at high rates of return. When we think about Equity Residential's use of debt, we should always consider it together with cash and equity.
Over 93.0% of Equity Residential shares are held by institutions such as insurance companies
Latest headline from www.nasdaq.com: Equity Residential Q1 FFO and Revenues Miss Estimates - Nasdaq

Equity Residential current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Equity analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Equity analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price91.78
Target Median Price92.00
Target High Price104.00
Recommendation Mean2.70
Number Of Analyst Opinions23
Target Low Price77.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Equity Residential Returns Distribution Density

The distribution of Equity Residential's historical returns is an attempt to chart the future uncertainty of Equity Residential's future price movements. The chart of the probability distribution of Equity Residential stock daily returns describes the distribution of returns around its average expected value. We use Equity Residential price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Equity Residential returns is essential to provide solid investment advice for Equity Residential stock.
Mean Return-0.21Value At Risk-3
Potential Upside2.23Standard Deviation1.70
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Equity Residential historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Equity Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Equity Residential is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Equity Residential backward and forwards among themselves. Equity Residential's institutional investor refers to the entity that pools money to purchase Equity Residential's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares57.7 M5.2 B
Blackrock IncCommon Shares36.8 M3.3 B
State Street CorpCommon Shares24.2 M2.2 B
Price T Rowe Associates IncCommon Shares18.5 M1.7 B
Bank Of America CorpCommon Shares13.8 M1.2 B
Apg Asset Management Us IncCommon Shares12.4 M1.1 B
Geode Capital Management LlcCommon Shares7.5 M669.5 M
Note, although Equity Residential's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Equity Residential Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(588.6 M)(370.26 M)(833.33 M)678.66 M(363.52 M)(373.09 M)
Depreciation Amortization and Accretion747.58 M790.12 M842.78 M832.44 M851.38 M904.07 M
Net Cash Flow or Change in Cash and Cash Equivalents(118.33 M)15.55 M686 K(17.27 M)260.51 M281.07 M
Net Cash Flow Business Acquisitions and Disposals(5.7 M)(6.57 M)68.66 M(4.14 M)(78.28 M)(84.45 M)
Issuance Purchase of Equity Shares35.34 M34.53 M80.9 M16.78 M89.71 M131.85 M
Issuance Repayment of Debt Securities(29.87 M)(161.91 M)209.06 M(1 B)291.45 M314.46 M
Payment of Dividends and Other Cash Distributions(739.38 M)(782.12 M)(831.11 M)(883.94 M)(900.47 M)(971.56 M)
Net Cash Flow from Financing(789.82 M)(963.91 M)(684.47 M)(1.95 B)(565.06 M)(609.67 M)
Net Cash Flow from Investing(594.3 M)(376.83 M)(771.82 M)663.59 M(434.62 M)(446.06 M)
Net Cash Flow Investment Acquisitions and Disposals2.54 M72.81 M(269 K)(773 K)23.11 M18.33 M
Net Cash Flow from Operations1.27 B1.36 B1.46 B1.27 B1.26 B1.36 B

Equity Residential Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Equity Residential or Real Estate sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Equity Residential stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Equity stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.1
β
Beta against DOW0.82
σ
Overall volatility
1.75
Ir
Information ratio -0.04

Equity Residential Volatility Alert

Equity Residential exhibits very low volatility with skewness of -0.38 and kurtosis of 0.33. However, we advise investors to further study Equity Residential technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Equity Residential's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Equity Residential's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Equity Residential Implied Volatility

Equity Residential's implied volatility exposes the market's sentiment of Equity Residential stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Equity Residential's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Equity Residential stock will not fluctuate a lot when Equity Residential's options are near their expiration.

Equity Residential Fundamentals Vs Peers

Comparing Equity Residential's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Equity Residential's direct or indirect competition across all of the common fundamentals between Equity Residential and the related equities. This way, we can detect undervalued stocks with similar characteristics as Equity Residential or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Equity Residential's fundamental indicators could also be used in its relative valuation, which is a method of valuing Equity Residential by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Equity Residential to competition
FundamentalsEquity ResidentialPeer Average
Return On Equity9.82 %(0.31) %
Return On Asset1.89 %(0.14) %
Profit Margin43.53 %(1.27) %
Operating Margin59.25 %(5.51) %
Current Valuation43.72 B16.62 B
Shares Outstanding375.02 M571.82 M
Shares Owned by Insiders1.69 %10.09 %
Shares Owned by Institutions92.84 %39.21 %
Number of Shares Shorted4.46 M4.71 M
Price to Earning26.55 X28.72 X
Price to Book2.65 X9.51 X
Price to Sales11.56 X11.42 X
Revenue2.43 B9.43 B
Gross Profit1.66 B27.38 B
EBITDA1.44 B3.9 B
Net Income1.06 B570.98 M
Cash and Equivalents39.71 M2.7 B
Cash per Share0.11 X5.01 X
Total Debt8.46 B5.32 B
Debt to Equity0.75 %48.70 %
Current Ratio0.53 X2.16 X
Book Value Per Share28.33 X1.93 K
Cash Flow from Operations1.21 B971.22 M
Short Ratio2.63 X4.00 X
Earnings Per Share2.82 X3.12 X
Price to Earnings To Growth6.34 X4.89 X
Number of Employees2.6 K18.84 K
Beta0.81-0.15
Market Capitalization28.11 B19.03 B
Total Asset11.81 B29.47 B
Retained Earnings1.45 B9.33 B
Working Capital(404.19 M)1.48 B
Current Asset155.12 M9.34 B
   Equity Residential exotic insider transaction detected [view details]

Equity Residential Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Equity . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution43286.08
Daily Balance Of Power(0.84)
Rate Of Daily Change0.97
Day Median Price74.76
Day Typical Price74.43
Market Facilitation Index0.0
Price Action Indicator(2.03)

About Equity Residential Buy or Sell Advice

When is the right time to buy or sell Equity Residential? Buying financial instruments such as Equity Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Equity Residential investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Current Assets117 M99.73 M114.69 M117.71 M
Total Assets21.17 B20.29 B21.17 B23.09 B

Use Investing Ideas to Build Portfolios

In addition to having Equity Residential in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Healthcare Thematic Idea Now

Healthcare
Healthcare Theme
Companies that provide healthcare goods and services including hospitals, health maintenance organizations, HMOs, or medical aid manufacturers. The Healthcare theme has 20 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
View All  Next Launch Healthcare
Continue to Equity Residential Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Equity Residential information on this page should be used as a complementary analysis to other Equity Residential's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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When running Equity Residential price analysis, check to measure Equity Residential's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Equity Residential is operating at the current time. Most of Equity Residential's value examination focuses on studying past and present price action to predict the probability of Equity Residential's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Equity Residential's price. Additionally, you may evaluate how the addition of Equity Residential to your portfolios can decrease your overall portfolio volatility.
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Is Equity Residential's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Equity Residential. If investors know Equity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Equity Residential listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Equity Residential is measured differently than its book value, which is the value of Equity that is recorded on the company's balance sheet. Investors also form their own opinion of Equity Residential's value that differs from its market value or its book value, called intrinsic value, which is Equity Residential's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Equity Residential's market value can be influenced by many factors that don't directly affect Equity Residential's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Equity Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine Equity Residential value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equity Residential's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.