Trade-Ideas LLC identified

Equinix

(

EQIX

) as a momo momentum 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 $310.2 million.
  • EQIX has a PE ratio of 285.
  • EQIX is currently in the upper 30% of its 1-year range.
  • EQIX is in the upper 25% of its 20-day range.
  • EQIX is in the upper 35% of its 5-day range.
  • EQIX is currently trading above yesterday's high.
  • EQIX has experienced a gap between today's open and yesterday's close of 0.6%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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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 1.9%. EQIX has a PE ratio of 285. Currently there are 10 analysts that rate Equinix a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Equinix has been 627,500 shares per day over the past 30 days. Equinix has a market cap of $26.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.63 and a short float of 5.6% with 3.67 days to cover. Shares are up 22.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Equinix as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, premium valuation and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 31.2%. 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.
  • The gross profit margin for EQUINIX INC is currently very high, coming in at 73.09%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.68% is in-line with the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, EQUINIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $104.27 million or 55.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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