EQH Should I Buy
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Equitable Holdings Inc (EQH) is not a strong buy for a beginner, long-term investor at this time. Despite the merger announcement with Corebridge Financial, which could create synergies in the retirement, insurance, and asset management sectors, the company's recent financial performance shows significant declines in revenue, net income, and EPS. Additionally, the technical indicators and options data do not provide a compelling entry point, and legal investigations surrounding the merger could pose risks. Holding the stock or waiting for further clarity on the merger's impact and financial recovery is advisable.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral at 56.035, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its resistance level (R1: 39.155), suggesting limited upside in the short term.
The announced $22 billion merger with Corebridge Financial could create a unified company with a strong presence in the retirement, insurance, and asset management sectors, serving over 12 million customers. Hedge funds have significantly increased their buying activity, up 173.14% over the last quarter.
The company's financial performance in Q4 2025 showed significant declines in revenue (-26.35% YoY), net income (-76.67% YoY), and EPS (-74.09% YoY). Legal investigations into the merger with Corebridge raise concerns about potential shareholder rights violations and governance issues.
In Q4 2025, Equitable Holdings reported a revenue decline of -26.35% YoY to $2.89 billion, net income dropped -76.67% YoY to $202 million, and EPS fell -74.09% YoY to $0.71. Gross margin also declined by -9.20% YoY to 60.7.
Analysts generally maintain positive ratings on EQH, with multiple Overweight and Buy ratings. However, price targets have been revised downward recently, with the latest target set at $53 by Keefe Bruyette. Analysts highlight mixed fundamentals in the life insurance sector, including reduced liability risks but increased competition and balance sheet complexity.
