Equinix (EQIX) closed at $973.43 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.08%.
The stock of data center operator has risen by 11.59% in the past month, leading the Finance sector's loss of 5.6% and the S&P 500's loss of 2.16%.
The investment community will be closely monitoring the performance of Equinix in its forthcoming earnings report. It is anticipated that the company will report an EPS of $10.72, marking a 10.86% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.51 billion, up 12.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $41.93 per share and a revenue of $10.18 billion, demonstrating changes of +9.39% and +10.49%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Equinix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.05% upward. Equinix presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Equinix has a Forward P/E ratio of 22.8 right now. For comparison, its industry has an average Forward P/E of 14.34, which means Equinix is trading at a premium to the group.
We can also see that EQIX currently has a PEG ratio of 2.19. 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 REIT and Equity Trust - Retail industry currently had an average PEG ratio of 2.69 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 49, positioning it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
