Equinix Inc. Stock Buy Recommendation Reiterated (EQIX)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK (TheStreet) -- Equinix (Nasdaq:EQIX) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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Highlights from the ratings report include:

• EQUINIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EQUINIX INC increased its bottom line by earning $2.65 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($3.65 versus $2.65).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 151.9% when compared to the same quarter one year prior, rising from $17.81 million to $44.86 million.
• EQIX's revenue growth trails the industry average of 33.5%. Since the same quarter one year prior, revenues rose by 17.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
• Powered by its strong earnings growth of 88.57% and other important driving factors, this stock has surged by 52.13% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

Equinix, Inc. provides data center services to protect and connect the information assets for the enterprises, financial services companies, and content and network providers primarily in the Americas, Europe, the Middle-East, Africa, and the Asia-Pacific. Equinix has a market cap of $10.61 billion and is part of the technology sector and internet industry. The company has a P/E ratio of 81.4, above the S&P 500 P/E ratio of 17.7. Shares are up 5.4% year to date as of the close of trading on Wednesday.

You can view the full Equinix Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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For more information on Equinix Inc. click any of the following:

• Equinix Inc. Stock Price

• Equinix Inc. Analyst Ratings

• Equinix Inc. Key Stats & Profile

• Equinix Inc. Earnings

• Equinix Inc. Ratio Comparison

• Equinix Inc. Growth Rates

• Equinix Inc. Balance Sheet

• Equinix Inc. Cash Flow

• Equinix Inc. Income Statement