Equinix (EQIX) ended the recent trading session at $758.51, demonstrating a +1.94% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 1.31%.
Shares of the data center operator witnessed a loss of 1.16% over the previous month, trailing the performance of the Finance sector with its gain of 4.46%, and the S&P 500's gain of 2.48%.
Investors will be eagerly watching for the performance of Equinix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $9.11, reflecting a 15.03% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.47 billion, reflecting a 9.05% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $38.51 per share and a revenue of $9.26 billion, representing changes of +9.97% and +5.84%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Equinix. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. Equinix is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Equinix is at present trading with a Forward P/E ratio of 19.32. This valuation marks a premium compared to its industry average Forward P/E of 14.05.
It is also worth noting that EQIX currently has a PEG ratio of 1.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the REIT and Equity Trust - Retail industry stood at 2.64 at the close of the market yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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