Equinix (EQIX) closed the most recent trading day at $953.00, moving -1.66% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.57%. Elsewhere, the Dow lost 1.61%, while the tech-heavy Nasdaq lost 0.26%.
Coming into today, shares of the data center operator had gained 20.81% in the past month. In that same time, the Finance sector lost 2.87%, while the S&P 500 lost 0.15%.
Investors will be eagerly watching for the performance of Equinix in its upcoming earnings disclosure. The company is predicted to post an EPS of $10.72, indicating a 10.86% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.51 billion, up 12.76% from the prior-year quarter.
EQIX's full-year Zacks Consensus Estimates are calling for earnings of $41.93 per share and revenue of $10.18 billion. These results would represent year-over-year changes of +9.39% and +10.49%, respectively.
Any recent changes to analyst estimates for Equinix should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.05% higher. Equinix is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Equinix is at present trading with a Forward P/E ratio of 23.11. Its industry sports an average Forward P/E of 14.81, so one might conclude that Equinix is trading at a premium comparatively.
It is also worth noting that EQIX currently has a PEG ratio of 2.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the REIT and Equity Trust - Retail industry stood at 2.75 at the close of the market yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 48, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Equinix, Inc. (EQIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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