In the latest trading session, Equinix (EQIX) closed at $765.51, marking a -1.06% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.21% for the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the data center operator had lost 0.32% lagged the Finance sector's gain of 3.47% and the S&P 500's gain of 3.07%.
The investment community will be paying close attention to the earnings performance of Equinix in its upcoming release. The company is predicted to post an EPS of $9.27, indicating a 2.43% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.33 billion, indicating a 5.65% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $38.13 per share and a revenue of $9.25 billion, indicating changes of +8.88% and +5.79%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Equinix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Right now, Equinix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Equinix is presently being traded at a Forward P/E ratio of 20.29. This valuation marks a premium compared to its industry average Forward P/E of 14.17.
We can also see that EQIX currently has a PEG ratio of 1.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the REIT and Equity Trust - Retail industry held an average PEG ratio of 3.2.
The REIT and Equity Trust - Retail industry is part of the Finance sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Equinix, Inc. (EQIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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