In the latest trading session, Equinix (EQIX) closed at $765.51, marking a -1.06% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.21% for the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the data center operator had lost 0.32% lagged the Finance sector's gain of 3.47% and the S&P 500's gain of 3.07%.
The investment community will be paying close attention to the earnings performance of Equinix in its upcoming release. The company is predicted to post an EPS of $9.27, indicating a 2.43% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.33 billion, indicating a 5.65% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $38.13 per share and a revenue of $9.25 billion, indicating changes of +8.88% and +5.79%, 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Right now, Equinix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Equinix is presently being traded at a Forward P/E ratio of 20.29. This valuation marks a premium compared to its industry average Forward P/E of 14.17.
We can also see that EQIX currently has a PEG ratio of 1.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the REIT and Equity Trust – Retail industry held an average PEG ratio of 3.2.
The REIT and Equity Trust – Retail industry is part of the Finance sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.
