Equity Stock Buy Hold or Sell Recommendation

Name: Equity Residential: Buy
Start: 2023-06-06
End: 2023-06-06
Location: Equity Residential

EQR Stock

USD 63.93 0.52 0.82%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Equity Residential is 'Buy'. 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.

The advice is provided from Equity Residential's buy-and-hold perspective. Check out 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. To learn how to invest in Equity Stock, please use our How to Invest in Equity Residential guide.In addition, we conduct extensive research on individual companies such as Equity and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Equity Residential. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.

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

Buy

Market Performance	Insignificant	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds of Distress	Below Average	Details
Economic Sensitivity	Almost mirrors the market	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Inapplicable	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

For the selected time horizon Equity Residential has a Risk Adjusted Performance of 0.0549, Jensen Alpha of 0.0963, Total Risk Alpha of 0.1118, Sortino Ratio of 0.0635 and Treynor Ratio of 0.0686

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 short ratio, current asset, and the relationship between the total debt and beta . Given that Equity Residential has a price to book of 2.19 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

	The company has 7.43 B in debt with debt to equity (D/E) ratio of 0.67, which is OK given its current industry classification. Equity Residential has a current ratio of 0.25, 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
	On 14th of April 2023 Equity Residential paid $ 0.6625 per share dividend to its current shareholders
	Latest headline from benzinga.com: Equity Residential Fares Well In Peak Leasing Season, Earns Upgrade From Analyst

Revenue Per Employee Net Income Per Employee

Equity Residential Returns Distribution Density

The distribution of Equity Residential's historical returns is an attempt to chart the 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.

Mean Return	0.08	Value At Risk	-2.27
Potential Upside	2.40	Standard Deviation	1.40

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 originates 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.

	Last Transaction	Type	Shares	Value
Vanguard Group Inc	2023-03-31	Common Shares	58 M	3.5 B
Norges Bank	2022-12-31	Common Shares	30.9 M	1.8 B
State Street Corp	2023-03-31	Common Shares	25 M	1.5 B
Price T Rowe Associates Inc	2023-03-31	Common Shares	18.1 M	1.1 B
First Eagle Investment Management Llc	2023-03-31	Common Shares	8.8 M	526.6 M
Macquarie Group Ltd	2023-03-31	Common Shares	7.9 M	474.7 M
Geode Capital Management Llc	2023-03-31	Common Shares	7.8 M	469.4 M
Resolution Capital Ltd	2023-03-31	Common Shares	7.8 M	465.9 M
Jpmorgan Chase Co	2023-03-31	Common Shares	6.5 M	387.7 M
Northern Trust Corp	2023-03-31	Common Shares	5.8 M	348.4 M
Legal General Group Plc	2023-03-31	Common Shares	5.3 M	315.5 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

	2018	2019	2020	2021	2022	2023 (projected)
Capital Expenditure	(370.26 M)	(833.33 M)	678.66 M	(363.52 M)	272.77 M	411.96 M
Depreciation Amortization and Accretion	790.12 M	842.78 M	832.44 M	851.38 M	894.33 M	938.81 M
Net Cash Flow or Change in Cash and Cash Equivalents	15.55 M	686 K	(17.27 M)	260.51 M	(223.06 M)	(228.93 M)
Net Cash Flow Business Acquisitions and Disposals	(6.57 M)	68.66 M	(4.14 M)	(78.28 M)	(159.4 M)	(171.99 M)
Issuance Purchase of Equity Shares	34.53 M	80.9 M	16.78 M	89.71 M	168.87 M	169.49 M
Issuance Repayment of Debt Securities	(161.91 M)	209.06 M	(1 B)	291.45 M	(929.34 M)	(1 B)
Payment of Dividends and Other Cash Distributions	(782.12 M)	(831.11 M)	(883.94 M)	(900.47 M)	(931.78 M)	(1.01 B)
Net Cash Flow from Financing	(963.91 M)	(684.47 M)	(1.95 B)	(565.06 M)	(1.79 B)	(1.93 B)
Net Cash Flow from Investing	(376.83 M)	(771.82 M)	663.59 M	(434.62 M)	107.79 M	167.32 M
Net Cash Flow from Operations	1.36 B	1.46 B	1.27 B	1.26 B	1.45 B	1.5 B

Backtest Equity Residential

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 Equity Real Estate Investment Trusts (REITs) 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'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 NYSE Composite	0.1	Details
β	Beta against NYSE Composite	0.97	Details
σ	Overall volatility	1.39	Details
Ir	Information ratio	0.07	Details

Equity Residential Volatility Alert

Equity Residential has relatively low volatility with skewness of -0.27 and kurtosis of 0.15. However, we advise all investors to independently investigate Equity Residential to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. 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 bullish 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 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

Fundamentals	Equity Residential	Peer Average
Return On Equity	0.08 %	(0.31) %
Return On Asset	0.0262 %	(0.14) %
Profit Margin	0.33 %	(1.27) %
Operating Margin	0.31 %	(5.51) %
Current Valuation	31.96 B	16.62 B
Shares Outstanding	378.9 M	571.82 M
Shares Owned by Insiders	1.71 %	10.09 %
Shares Owned by Institutions	93.30 %	39.21 %
Number of Shares Shorted	6 M	4.71 M
Price to Earning	21.41 X	28.72 X
Price to Book	2.19 X	9.51 X
Price to Sales	9.18 X	11.42 X
Revenue	2.74 B	9.43 B
Gross Profit	1.75 B	27.38 B
EBITDA	1.67 B	3.9 B
Net Income	807 M	570.98 M
Cash and Equivalents	53.87 M	2.7 B
Cash per Share	0.18 X	5.01 X
Total Debt	7.43 B	5.32 B
Debt to Equity	0.67 %	48.70 %
Current Ratio	0.25 X	2.16 X
Book Value Per Share	29.30 X	1.93 K
Cash Flow from Operations	1.45 B	971.22 M
Short Ratio	3.43 X	4.00 X
Earnings Per Share	2.42 X	3.12 X
Price to Earnings To Growth	1.28 X	4.89 X
Target Price	67.63
Number of Employees	2.4 K	18.84 K
Beta	0.83	-0.15
Market Capitalization	24.03 B	19.03 B
Total Asset	20.22 B	29.47 B
Retained Earnings	1.66 B	9.33 B
Working Capital	(399.74 M)	1.48 B

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 Distribution	16436.15
	Daily Balance Of Power	0.5253
	Rate Of Daily Change	1.01
	Day Median Price	63.61
	Day Typical Price	63.71
	Market Facilitation Index	0.0
	Price Action Indicator	0.59

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 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. Most of our advising modules are very easy to use and apply.

Please read more on our stock advisor page.

	2020	2021	2022	2023 (projected)
Current Assets	99.73 M	360.24 M	137.17 M	140.78 M
Total Assets	20.29 B	21.17 B	20.22 B	19.47 B

Current Assets Total Assets

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.

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Corporate Bonds

Funds or Etfs investing in different types of corporate debt instruments. The Corporate Bonds theme has 37 constituents at this time.

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 Corporate Bonds Theme or any other thematic opportunities.

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Check out 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. To learn how to invest in Equity Stock, please use our How to Invest in Equity Residential guide. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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When running Equity Residential's 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 the 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.

Quarterly Earnings Growth

2.006

Dividend Share

2.538

Earnings Share

2.42

Revenue Per Share

7.394

Quarterly Revenue Growth

0.079

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 if Equity Residential is a good investment 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.

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

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Equity Stock Buy Hold or Sell Recommendation

Execute Equity Residential Buy or Sell Advice

Time Horizon

Risk Tolerance

Market Performance

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Financial Strenth (F Score)

Financial Leverage

Reporting Quality (M-Score)

Equity Residential Trading Alerts and Improvement Suggestions

Equity Residential Returns Distribution Density

Equity Stock Institutional Investors

Equity Residential Cash Flow Accounts

Equity Residential Greeks

Equity Residential Volatility Alert

Equity Residential Fundamentals Vs Peers

Equity Residential Market Momentum

About Equity Residential Buy or Sell Advice

Use Investing Ideas to Build Portfolios

Did You Try This Idea?

Run Corporate Bonds Thematic Idea Now

Corporate Bonds

Complementary Tools for Equity Stock analysis

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