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Equinix (EQIX) Laps the Stock Market: Here's Why

The latest trading session saw Equinix (EQIX) ending at $766.60, denoting a +0.68% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.

Shares of the data center operator witnessed a loss of 5.96% over the previous month, trailing the performance of the Finance sector with its loss of 0.44% and the S&P 500's gain of 3.96%.

The investment community will be closely monitoring the performance of Equinix in its forthcoming earnings report. On that day, Equinix is projected to report earnings of $8.81 per share, which would represent year-over-year growth of 9.58%. At the same time, our most recent consensus estimate is projecting a revenue of $2.16 billion, reflecting a 6.86% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $34.97 per share and a revenue of $8.76 billion, indicating changes of +8.91% and +6.99%, respectively, from the former year.

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It's also important for investors to be aware of any recent modifications to analyst estimates for Equinix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Equinix is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Equinix is currently exchanging hands at a Forward P/E ratio of 21.78. This valuation marks a premium compared to its industry's average Forward P/E of 12.93.

Also, we should mention that EQIX has a PEG ratio of 2.36. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 3.22 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Equinix, Inc. (EQIX) : Free Stock Analysis Report

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Zacks Investment Research