Equinix (EQIX) closed at $1,055.85 in the latest trading session, marking a +1.21% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.
Shares of the data center operator have depreciated by 3.38% over the course of the past month, underperforming the Finance sector's gain of 1.89%, and the S&P 500's loss of 0.23%.
The upcoming earnings release of Equinix will be of great interest to investors. The company is expected to report EPS of $10.68, up 7.77% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.59 billion, showing a 14.82% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $42.52 per share and revenue of $10.24 billion. These totals would mark changes of +10.93% and +11.09%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Equinix. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Equinix presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Equinix is presently trading at a Forward P/E ratio of 24.54. This valuation marks a premium compared to its industry average Forward P/E of 15.85.
We can also see that EQIX currently has a PEG ratio of 1.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The REIT and Equity Trust - Retail industry had an average PEG ratio of 2.45 as trading concluded yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Equinix, Inc. (EQIX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).