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Equinix (EQIX) Dips More Than Broader Market: What You Should Know

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Equinix (EQIX - Free Report) ended the recent trading session at $789.79, demonstrating a -1.68% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.

The data center operator's shares have seen an increase of 2.75% over the last month, surpassing the Finance sector's gain of 1.89% and falling behind the S&P 500's gain of 3.08%.

Market participants will be closely following the financial results of Equinix in its upcoming release. The company is expected to report EPS of $9.27, up 2.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.33 billion, up 5.65% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $38.13 per share and revenue of $9.25 billion, which would represent changes of +8.88% and +5.79%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Equinix. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Equinix presently features a Zacks Rank of #3 (Hold).

Investors should also note Equinix's current valuation metrics, including its Forward P/E ratio of 21.07. This represents a premium compared to its industry average Forward P/E of 13.97.

Meanwhile, EQIX's PEG ratio is currently 1.27. 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. The REIT and Equity Trust - Retail was holding an average PEG ratio of 3.1 at yesterday's closing price.

The REIT and Equity Trust - Retail industry is part of the Finance sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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