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

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 down 0.1%. By the end of trading, Equinix rose $2.67 (1.2%) to $221.69 on heavy volume. Throughout the day, 1.4 million shares of Equinix exchanged hands as compared to its average daily volume of 729,300 shares. The stock ranged in a price between $216.04-$222.71 after having opened the day at $217.15 as compared to the previous trading day's close of $219.02. Other companies within the Telecommunications industry that increased today were: Otelco ( OTT), up 10.4%, WPCS International ( WPCS), up 8.8%, NTS ( NTS), up 6.9%, and Telecom Italia SpA ( TI), up 6.6%.
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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 $10.31 billion and is part of the technology sector. The company has a P/E ratio of 79.1, above the S&P 500 P/E ratio of 17.7. Shares are up 2.4% year to date as of the close of trading on Wednesday. Currently there are 13 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 impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Dialogic ( DLGC), down 9%, Internet Gold Golden Lines ( IGLD), down 8.3%, Research in Motion ( RIMM), down 7.8%, and Research in Motion ( BBRY), down 7.8%, were all laggards within the telecommunications industry with Telefonica Brasil S.A ( VIV) 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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