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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Equinix ( EQIX) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 1.1%. By the end of trading, Equinix rose $2.78 (1.5%) to $185.77 on light volume. Throughout the day, 546,025 shares of Equinix exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $182.73-$187 after having opened the day at $184.20 as compared to the previous trading day's close of $182.99. Other companies within the Telecommunications industry that increased today were: Inteliquent ( IQNT), up 28.8%, Shenandoah Telecommunications ( SHEN), up 7.8%, Zhone Technologies ( ZHNE), up 7.1%, and Vicon Industries ( VII), up 6.7%.
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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 $8.88 billion and is part of the technology sector. The company has a P/E ratio of 77.1, above the S&P 500 P/E ratio of 17.7. Shares are up 80.2% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Equinix a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Equinix as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

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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