Bull’s Eye Report: Equinix (EQIX)

This cloud computing stock has little correlation to the rest of the market

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Equinix Inc EQIX Internet Software & Services 7.6 +0.96% $210.49

 

Why We Like The Stock:

Equinix Inc. (NASDAQ:EQIX) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Since the beginning of 2012, EQIX has been rallying in impressive fashion, pulling back modestly along the way. One of the more interesting aspects of this stock is that it has very low correlations–both to the major indices of the market, as tracked by the S&P 500 ETF (NYSE:SPY),  the Dow Jones ETF (NYSE:DIA) and the S&P Midcap 400 SPDR ETF (NYSE:MDY), as well as its competitors Rackspace Hosting (NYSE:RAX), VeriSign (NASDAQ:VRSN), and Akamai Technologies (NASDAQ:AKAM). So, seemingly free from the majority of market influence, EQIX is an attractive short-term trading opportunity. Support is strong around $210, and the stock has an immediate upside of $225+ given its recent highs in February. At its current price, EQIX has crossed back above its short-term moving averages but still remains a low enough price to pick up for a short-term trade.

We Would Be Buyers:

At the current price (~$218), or on a pullback to ~$213.

Company Profile:

Equinix, Inc. connects businesses with partners and customers worldwide through a global platform of data centers. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies, including more than 690 network service providers. The company offers each customer a choice of business partners and solutions based on their colocation, interconnection and managed IT service needs. Equinix operates in 38 markets across the Americas, Europe, the Middle-East and Africa (EMEA) and Asia-Pacific. Equinix offers customers direct interconnection to an aggregation of bandwidth providers. In July 2012, the company acquired ancotel GmbH, a provider of carrier-neutral colocation and interconnection services in Europe. In July 2012, the company acquired Hong Kong-based data center provider, Asia Tone. In November 2012, the company sold of 16 International Business Exchange data centers located throughout the United States.

Stock Rating: 7.6

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Equinix – Last Three Months

EQIX 1 300x168 Bulls Eye Report: Equinix (EQIX)
Click to Enlarge

Equinix – Last 12 Months

EQIX 3 300x168 Bulls Eye Report: Equinix (EQIX)
Click to Enlarge

Equinix – Last Five Years

EQIX 3 300x168 Bulls Eye Report: Equinix (EQIX)
Click to Enlarge

Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”
At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


Article printed from InvestorPlace Media, http://investorplace.com/247trader/bulls-eye-report-equinix-eqix/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.