In the latest close session, Equinix (EQIX) was up +1.32% at $795.47. The stock's change was more than the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%.
Shares of the data center operator have depreciated by 11.67% over the course of the past month, underperforming the Finance sector's gain of 2.2%, and the S&P 500's gain of 4.27%.
The investment community will be paying close attention to the earnings performance of Equinix in its upcoming release. The company's upcoming EPS is projected at $9.2, signifying a 0.22% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.26 billion, showing a 4.47% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $37.76 per share and a revenue of $9.21 billion, indicating changes of +7.82% and +5.24%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Equinix. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% lower. Equinix is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Equinix has a Forward P/E ratio of 20.79 right now. This signifies a premium in comparison to the average Forward P/E of 13.27 for its industry.
We can additionally observe that EQIX currently boasts a PEG ratio of 1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the REIT and Equity Trust - Retail industry was having an average PEG ratio of 2.94.
The REIT and Equity Trust - Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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