Equitable Holdings (EQH) is drawing attention after introducing bitcoin exposure into its Structured Capital Strategies annuity portfolio through a new SCS Premier option that tracks the iShares Bitcoin Trust ETF.
These product changes come as Equitable Holdings' share price has shown strong recent momentum, with a 1-month share price return of 10.96% and a 3-month share price return of 31.23%, while its 3-year total shareholder return of 106.61% and 5-year total shareholder return of 99.25% point to a solid longer term track record, despite a modest 1-year total shareholder return of 1.68%.
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Bulls see Equitable Holdings using bitcoin exposure and rising revenue to justify the share price surge. Bears point to recent losses and product risk. Which side do the current valuation markers support next?
Most Popular Narrative: 12.2% Undervalued
Equitable Holdings is currently trading at $53.54 versus a popular fair value anchor of $61.00, which frames the recent price strength against a higher long term narrative.
Product innovation (notably in RILAs, fee-based, and protection-focused annuities) and first-mover advantages through partnerships with major asset managers (BlackRock, AB, 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.
Want to see what kind of revenue climb and margin shift has to line up for that fair value on Equitable Holdings. The core narrative leans on faster top line growth, a sharp swing from losses to profits and a future earnings multiple that looks low compared to many financial peers. Curious which specific growth assumptions have to hold together for that $61.00 figure to make sense.
Result: Fair Value of $61 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Equitable Holdings still faces pressure from runoff in higher margin RILA products and ongoing fee headwinds at AllianceBernstein, which could undermine this upbeat fair value story.
Find out about the key risks to this Equitable Holdings narrative.
Next Steps
With mixed views on Equitable Holdings taking shape, it makes sense to move quickly and check the underlying numbers yourself before forming a stance. To weigh up both the concerns and the potential upside in one place, review the 3 key rewards and 2 important warning signs .
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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.
Companies discussed in this article include EQH .
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