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Here's Why Equinix (EQIX) Gained But Lagged the Market Today
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In the latest market close, Equinix (EQIX - Free Report) reached $771.90, with a +0.34% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.11%. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.
The data center operator's shares have seen an increase of 2.31% over the last month, surpassing the Finance sector's loss of 2.85% and the S&P 500's loss of 1.16%.
The upcoming earnings release of Equinix will be of great interest to investors. The company's earnings report is expected on August 7, 2024. The company is forecasted to report an EPS of $8.82, showcasing a 9.7% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.16 billion, reflecting a 6.86% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $34.98 per share and revenue of $8.76 billion, which would represent changes of +8.94% and +6.99%, respectively, from the prior year.
Any recent changes to analyst estimates for Equinix should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Equinix boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Equinix is currently being traded at a Forward P/E ratio of 21.99. This represents a premium compared to its industry's average Forward P/E of 13.53.
It is also worth noting that EQIX currently has a PEG ratio of 2.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the REIT and Equity Trust - Retail industry stood at 3.72 at the close of the market yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Equinix (EQIX) Gained But Lagged the Market Today
In the latest market close, Equinix (EQIX - Free Report) reached $771.90, with a +0.34% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.11%. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.
The data center operator's shares have seen an increase of 2.31% over the last month, surpassing the Finance sector's loss of 2.85% and the S&P 500's loss of 1.16%.
The upcoming earnings release of Equinix will be of great interest to investors. The company's earnings report is expected on August 7, 2024. The company is forecasted to report an EPS of $8.82, showcasing a 9.7% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.16 billion, reflecting a 6.86% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $34.98 per share and revenue of $8.76 billion, which would represent changes of +8.94% and +6.99%, respectively, from the prior year.
Any recent changes to analyst estimates for Equinix should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Equinix boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Equinix is currently being traded at a Forward P/E ratio of 21.99. This represents a premium compared to its industry's average Forward P/E of 13.53.
It is also worth noting that EQIX currently has a PEG ratio of 2.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the REIT and Equity Trust - Retail industry stood at 3.72 at the close of the market yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.