Equinix Inc. (EQIX): Today's Featured Telecommunications Winner

Equinix ( EQIX) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 1.1%. By the end of trading, Equinix rose $1.28 (0.7%) to $176.40 on light volume. Throughout the day, 581,955 shares of Equinix exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $173.36-$177.81 after having opened the day at $175 as compared to the previous trading day's close of $175.12. Other companies within the Telecommunications industry that increased today were: Cbeyond ( CBEY), up 16.9%, Frequency Electronics ( FEIM), up 8.8%, 8x8 ( EGHT), up 6.2%, and Atlantic Tele-Network ( ATNI), up 6%.

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 $8.59 billion and is part of the technology sector. The company has a P/E ratio of 90, above the average telecommunications industry P/E ratio of 89.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 75.7% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Equinix a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Equinix as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, robust revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

On the negative front, Nexxus Lighting ( NEXS), down 41.6%, NTELOS Holdings ( NTLS), down 17.4%, Iridium Communications ( IRDM), down 17%, and Ubiquiti Networks ( UBNT), down 12%, were all laggards within the telecommunications industry with Telefonica ( TEF) being today's telecommunications industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).

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