Equinix (EQIX) Stock Dips While Market Gains: Key Facts

In the latest close session, Equinix (EQIX) was down 3.94% at $1,042.39. This change lagged the S&P 500's 0.79% gain on the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Heading into today, shares of the data center operator had gained 3.27% over the past month, outpacing the Finance sector's gain of 2.74% and the S&P 500's loss of 1.82%.

The investment community will be closely monitoring the performance of Equinix in its forthcoming earnings report. The company's upcoming EPS is projected at $11.25, signifying a 13.52% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.59 billion, indicating a 14.82% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $42.93 per share and revenue of $10.24 billion, which would represent changes of +12% and +11.09%, respectively, from the prior year.

Investors should also note any recent changes 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.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Equinix holds a Zacks Rank of #2 (Buy).

In terms of valuation, Equinix is presently being traded at a Forward P/E ratio of 25.28. Its industry sports an average Forward P/E of 15.54, so one might conclude that Equinix is trading at a premium comparatively.

It's also important to note that EQIX currently trades at a PEG ratio of 1.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. EQIX's industry had an average PEG ratio of 2.61 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 162, finds itself in the bottom 34% echelons of all 250+ industries.

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The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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