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Here's Why Equinix (EQIX) Fell More Than Broader Market
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In the latest close session, Equinix (EQIX - Free Report) was down 1.85% at $1,023.81. The stock's change was less than the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 0.65%.
Heading into today, shares of the data center operator had lost 2.44% over the past month, lagging the Finance sector's loss of 1.37% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Equinix in its upcoming release. On that day, Equinix is projected to report earnings of $10.51 per share, which would represent year-over-year growth of 6.92%. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 10.95% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $43.45 per share and revenue of $10.27 billion, indicating changes of +13.36% and +11.46%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Equinix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Equinix is holding a Forward P/E ratio of 24. Its industry sports an average Forward P/E of 14.51, so one might conclude that Equinix is trading at a premium comparatively.
Meanwhile, EQIX's PEG ratio is currently 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. EQIX's industry had an average PEG ratio of 2.31 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Equinix (EQIX) Fell More Than Broader Market
In the latest close session, Equinix (EQIX - Free Report) was down 1.85% at $1,023.81. The stock's change was less than the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 0.65%.
Heading into today, shares of the data center operator had lost 2.44% over the past month, lagging the Finance sector's loss of 1.37% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Equinix in its upcoming release. On that day, Equinix is projected to report earnings of $10.51 per share, which would represent year-over-year growth of 6.92%. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 10.95% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $43.45 per share and revenue of $10.27 billion, indicating changes of +13.36% and +11.46%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Equinix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Equinix is holding a Forward P/E ratio of 24. Its industry sports an average Forward P/E of 14.51, so one might conclude that Equinix is trading at a premium comparatively.
Meanwhile, EQIX's PEG ratio is currently 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. EQIX's industry had an average PEG ratio of 2.31 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.