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 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 $187.2 million.
- EQIX is up 2.5% today from today's close.
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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 96.9. Currently there are 11 analysts that rate Equinix a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Equinix has been 905,700 shares per day over the past 30 days. Equinix has a market cap of $8.9 billion and is part of the technology sector and internet industry. The stock has a beta of 0.90 and a short float of 21.1% with 8.42 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Tuesday.
rates Equinix as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.7%. Since the same quarter one year prior, revenues rose by 11.6%. 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 71.07%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, EQIX's net profit margin of 8.00% significantly trails the industry average.
- EQUINIX INC has improved earnings per share by 31.3% 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 ($3.48 versus $1.84).
- Currently the debt-to-equity ratio of 1.69 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, EQIX has managed to keep a strong quick ratio of 1.55, which demonstrates the ability to cover short-term cash needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
- You can view the full Equinix Ratings Report.