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Equinix (EQIX) Increases Yet Falls Behind Market: What Investors Need to Know September 19, 2024
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Equinix (EQIX - Free Report) ended the recent trading session at $870.99, demonstrating a +1.17% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.7%. Meanwhile, the Dow experienced a rise of 1.26%, and the technology-dominated Nasdaq saw an increase of 2.51%.
Shares of the data center operator have appreciated by 5.25% over the course of the past month, outperforming the Finance sector's gain of 2.47% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Equinix will be of great interest to investors. In that report, analysts expect Equinix to post earnings of $8.69 per share. This would mark year-over-year growth of 6.11%. Our most recent consensus estimate is calling for quarterly revenue of $2.2 billion, up 6.8% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $35.10 per share and revenue of $8.74 billion, which would represent changes of +9.31% and +6.69%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Equinix. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.29% fall in the Zacks Consensus EPS estimate. Equinix is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Equinix is presently being traded at a Forward P/E ratio of 24.53. This indicates a premium in contrast to its industry's Forward P/E of 15.
It's also important to note that EQIX currently trades at a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EQIX's industry had an average PEG ratio of 3.64 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 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.
To follow EQIX in the coming trading sessions, be sure to utilize Zacks.com.
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Equinix (EQIX - Free Report) ended the recent trading session at $870.99, demonstrating a +1.17% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.7%. Meanwhile, the Dow experienced a rise of 1.26%, and the technology-dominated Nasdaq saw an increase of 2.51%.
Shares of the data center operator have appreciated by 5.25% over the course of the past month, outperforming the Finance sector's gain of 2.47% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Equinix will be of great interest to investors. In that report, analysts expect Equinix to post earnings of $8.69 per share. This would mark year-over-year growth of 6.11%. Our most recent consensus estimate is calling for quarterly revenue of $2.2 billion, up 6.8% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $35.10 per share and revenue of $8.74 billion, which would represent changes of +9.31% and +6.69%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Equinix. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.29% fall in the Zacks Consensus EPS estimate. Equinix is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Equinix is presently being traded at a Forward P/E ratio of 24.53. This indicates a premium in contrast to its industry's Forward P/E of 15.
It's also important to note that EQIX currently trades at a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EQIX's industry had an average PEG ratio of 3.64 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 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.
To follow EQIX in the coming trading sessions, be sure to utilize Zacks.com.