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Equinix (EQIX) Laps the Stock Market: Here's Why

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In the latest trading session, Equinix (EQIX - Free Report) closed at $1,051.21, marking a +1.58% move from the previous day. This move outpaced the S&P 500's daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.

The data center operator's stock has dropped by 0.8% in the past month, falling short of the Finance sector's gain of 4.33% and the S&P 500's gain of 2.2%.

The upcoming earnings release of Equinix will be of great interest to investors. The company's earnings report is expected on July 29, 2026. It is anticipated that the company will report an EPS of $11.25, marking a 13.52% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.59 billion, indicating a 14.82% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $43.05 per share and a revenue of $10.24 billion, indicating changes of +12.31% and +11.05%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Equinix. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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, the Zacks Consensus EPS estimate has remained steady. As of now, Equinix holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Equinix has a Forward P/E ratio of 24.04 right now. This expresses a premium compared to the average Forward P/E of 15.29 of its industry.

We can also see that EQIX currently has a PEG ratio of 1.71. 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 average PEG ratio for the REIT and Equity Trust - Retail industry stood at 2.56 at the close of the market yesterday.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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