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 or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume 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 $198.5 million.
- EQIX has traded 78,127 shares today.
- EQIX is trading at 3.35 times the normal volume for the stock at this time of day.
- EQIX is trading at a new high 3.15% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EQIX with the Ticky from Trade-Ideas. See the FREE profile for EQIX NOW at Trade-Ideas
More details on EQIX:
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. EQIX has a PE ratio of 69.2. Currently there are 9 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 633,600 shares per day over the past 30 days. Equinix has a market cap of $10.3 billion and is part of the technology sector and internet industry. The stock has a beta of 0.77 and a short float of 8.6% with 3.81 days to cover. Shares are up 8.4% year-to-date as of the close of trading on Wednesday.
rates Equinix as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, expanding profit margins, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- 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 143.9% when compared to the same quarter one year prior, rising from -$25.82 million to $11.33 million.
- EQIX's revenue growth trails the industry average of 28.5%. Since the same quarter one year prior, revenues rose by 14.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for EQUINIX INC is currently very high, coming in at 70.72%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EQIX's net profit margin of 1.87% significantly trails the industry average.
- 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. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- EQUINIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EQUINIX INC reported lower earnings of $1.84 versus $2.57 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus $1.84).
- You can view the full Equinix Ratings Report.