Trade-Ideas: Equinix (EQIX) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Equinix as such a stock due to the following factors:
- EQIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $180.1 million.
- EQIX is up 2.1% today from today's close.
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More details on EQIX:
Equinix, Inc. is a publicly owned real estate investment trust. The stock currently has a dividend yield of 4.1%. Currently there are 8 analysts that rate Equinix a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Equinix has been 626,400 shares per day over the past 30 days. Equinix has a market cap of $12.8 billion and is part of the technology sector and internet industry. The stock has a beta of 0.61 and a short float of 6.1% with 3.54 days to cover. Shares are up 2.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Equinix as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 18.5%. Since the same quarter one year prior, revenues rose by 13.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, EQUINIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 885.9% when compared to the same quarter one year ago, falling from $45.19 million to -$355.10 million.
- You can view the full Equinix Ratings Report.
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