Equinix (EQIX) 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.
