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EquinixEQIX is well positioned to take advantage of back winds, such as the high demand for interconnected data center space, driven by the acceleration in enterprise cloud adoption and the growing demands of cloud or cloud clients. internet. To meet this growing demand, EQIX is expanding its International Business Exchange data centers globally. However, the large capital expenditures required for expansion movements act as opposite winds. Also, intense competition from neutral data centers from the carrier is worrying.
High growth in cloud computing, Internet of Things and big data, and increased demand for third-party IT infrastructure are driving demand for data center infrastructure. Moreover, growth in artificial intelligence, as well as autonomous vehicle and virtual / augmented reality markets, is projected to be strong over the next five to six years.
Equinix is taking advantage of these subsequent winds by developing and acquiring data centers, globally. Earlier this month, EQIX announced its plan to take advantage of the growing African market with the acquisition of MainOne. EQIX’s efforts to strengthen its presence in Africa will increase scale and strengthen its position in the region, helping it benefit from the steady growth of data consumption.
Earlier this month, Equinix announced a multi-year partnership with the Nasdaq. This expanded alliance reflects the huge demand for Equinix data center infrastructure amid strong growth in the cloud computing.
Shares of this player currently on Zacks Rank # 3 (Hold) have been valued at 6% in the last six months, surpassing the industry growth of 0.4%. However, Zacks Consensus estimate for its 2021 funds from operations (FFO) per share has shifted south slightly to $ 27.1 over the past month.
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Equinix plans to add data centers in the coming quarters to meet growing demand for over-the-counter and interconnection services. Although such moves are a strategic adjustment, they require large capital expenditures and are likely to affect short-term performance.
Also, given the strong growth potential of this industry, competition from existing and new players in space is expected to increase. Intensified competition could push competitors to use aggressive pricing policies, making Equinix vulnerable to price pressure.
Stocks to consider
Some of the best ranked shares by the REIT sector are Media OUTFRONT OUTSIDE, Cedar Realty Trust CDR and Condor Hospitality Trust CDOR.
OUTFRONT Media has a Rank # 1 Zacks currently. OUT shares have gained 11% in the last six months.
Zacks consensus estimate for FFO per share of OUTFRONT Media 2021 has increased 13.8% over the last two months. FFO per share of OUT 2021 is expected to increase 45.71% from the figure reported a year ago. You can see For the full list of today’s Zacks # 1 stock Order here.
Zacks’s consensus estimate for the current year of Cedar Realty FFO per share has risen 2.6% to $ 2.36 in the last two months. Over the last four quarters, the CDR per share FFO crossed the consensus point twice and lost the same in the other two cases, the surprise average was 6.4%.
Currently, CDR has a Zacks rating of 1. Cedar Realty shares have been valued at 51.6% in the last six months.
The Zacks consensus estimate for the FFO per share of the Condor Hospitality Trust for 2021 has risen 25.8% over the past two months. The FFO per share of CDOR 2021 is expected to increase significantly from the figure reported a year ago.
Condor Hospitality has a Zacks grade of 1 at the moment. CDOR shares have risen 31.4% in the last six months.
Note: Everything related to the profits presented in this paper represents FFO – a metric widely used to evaluate the performance of REITs.
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Equinix, Inc. (EQIX): Free stock analysis report
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OUTFRONT Media Inc. (OUT): Free stock analysis report
Condor Hospitality Trust, Inc. (CDOR): Free Stock Analysis Report
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