For Immediate Release
Chicago, IL – October 07, 2016 – Zacks Equity Research highlights definitely Equinix ( NASDAQ:(EQIX - Analyst Report) – Free Report ) as the Bull of the Day and Dollar General ( NYSE:(DG - Analyst Report) – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Facebook (NASDAQ:(FB - Analyst Report) – Free Report).
Here is a synopsis of all three stocks:
Bull of the Day:
Equinix ( NASDAQ:(EQIX - Analyst Report) – Free Report ) is a real estate investment trust that provides data center services to protect and connect the information assets for the enterprises, financial services companies, and content and network providers. The company is based in Redwood City, California and employs over 3300 employees. The stock is Zacks Rank #1 (Strong Buy) and todays Bull of the Day.
Equinix has a market cap of $25 billion with a Forward PE of 26. The company has a dividend of 2% and expected EPS growth rate of 17%. In addition, the company also sits in an industry that is ranked 77 out of 265 (Top 29%) in the Zacks Industry Rank.
Early in August Equinix reported earnings, with an EPS beat of 30%. The company also beat on revenue, seeing $900.5 million on the quarter verse the $894 million expected. The company guided Q3 slightly below the $921 million expected, but guided fiscal year 2016 higher.
CEO Stephen M. Smith had some comments on the quarter:
"The second quarter marked another strong performance for Equinix as we delivered both revenues and adjusted EBITDA above the top end of our guidance ranges, and as the company recorded its 54th quarter of consecutive revenue growth... As digital transformation drives companies to evolve business models and operations, Equinix continues to serve as an important partner as reflected in our strong growth and market leadership position. During the quarter we made significant progress towards our goal of owning more of our real estate with the acquisition of two Paris data centers, and we commenced construction on DC12, our first data center build on our owned Ashburn North Campus. The Ashburn campus is the largest internet exchange point in North America, and this expansion will effectively double our owned capacity in this important market over the next few years."
Last quarters beat broke a losing streak for the company of 4 straight quarters of missing on EPS. Despite a full year of missing earnings, the stock continued higher, almost hitting $400 a share. The expansion and growth of the company hurt EPS during that period, but now the company looks to be hitting their numbers.
Bear of the Day :
Dollar General ( NYSE:(DG - Analyst Report) – Free Report ) is a discount retailer that provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. The Company separates its merchandise into four categories, which includes highly consumable, seasonal, home products and basic clothing. Dollar General is based in Tennessee and has 13,000 stores in 43 states. The stock is the Bear of the Day after being downgraded to a Zacks Rank #5 (Strong Sell) and after poor earnings earlier last month.
The company has a market cap of $19 billion and a Forward PE of 15. The stock sports Zacks Style Scores of “B” in Value and Growth, but “C” in Momentum. The stock has been hammered of late, as an earnings report in August disappointed. It's off over 25% since the report, but due to falling estimates, investors should stay away.
The company reported Q2 EPS on August 25th, where it missed on both the top and bottom line. The big red flag was the comparable sales which came in lower than expected. The report sent the stock tumbling, falling from $90 a share to $75. Now with the stock under $70, estimates continue to be revised lower, a sign it’s still time to avoid the stock.
Over the last 60 days, estimates have been revised lower for all time frames. For fiscal year 2016, the numbers have been taken down 2.8%, from $4.64 to $4.51. For next year, estimates are now seen at $4.95, down from $5.17 or 4.2%.
Ahead of Hurricane Matthew, Airbnb Activates Disaster Response Tool
On Wednesday, we-commerce rental site Airbnb has activated its Disaster Response tool in Florida and South Carolina in order to help evacuees affected by Hurricane Matthew, a powerful Category 4 storm with winds as high as 165 mph. The storm made landfall in Haiti Tuesday morning, killing at least 108 people.
The tool’s main use will be to help displaced residents connect with Airbnb hosts who can offer accommodations, at no cost. The service will be available through Tuesday, October 11.
“This is the first major hurricane threat that this area has seen in a few years, and we are hopeful that Airbnb can help play a small part in making the evacuation process easier for residents and their families,” Airbnb spokesperson Nick Shapiro said in a statement.
This is similar to Facebook’s (NASDAQ:(FB - Analyst Report) – Free Report) Safety Check, a tool used in the event of natural disasters or terrorist attacks that allows users to let family and friends know if you’re safe and check to see if they’re safe, too.
According to Airbnb, its disaster response tool is activated in the event of a national emergency like Hurricane Matthew. The company created the service after Hurricane Sandy hit New York in 2012, and hopes it will “make it easier for community members all over the world to provide emergency accommodations in times of crisis.”
The governors of Florida, Georgia, South Carolina, and North Carolina have all declared states of emergency, and hurricane warnings are in effect for portions of Florida and the Bahamas.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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