Equinix (EQIX) closed the most recent trading day at $779.31, moving -1.56% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.27%, and the technology-dominated Nasdaq saw a decrease of 0.07%.
Heading into today, shares of the data center operator had gained 2.86% over the past month, trading in line with the Finance sector and outpacing the S&P 500's gain of 2.71%.
Market participants will be closely following the financial results of Equinix in its upcoming release. It is anticipated that the company will report an EPS of $9.27, marking a 2.43% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.33 billion, up 5.65% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $38.13 per share and a revenue of $9.25 billion, representing changes of +8.88% and +5.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Equinix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.31% upward. As of now, Equinix holds a Zacks Rank of #3 (Hold).
With respect to valuation, Equinix is currently being traded at a Forward P/E ratio of 20.76. This signifies a premium in comparison to the average Forward P/E of 14.13 for its industry.
Investors should also note that EQIX has a PEG ratio of 1.25 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the REIT and Equity Trust - Retail industry was having an average PEG ratio of 3.08.
The REIT and Equity Trust - Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 25% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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