#3 - Equinix (NASDAQ:EQIX)
The infrastructure sector isn’t limited to physical infrastructure; it also includes digital infrastructure. This area is growing exponentially as the need for data centers expands. That’s why you should consider Equinix (NASDAQ: EQIX). Equinix is one of the world’s leading infrastructure companies, and it operates as a real estate investment trust (REIT).
Although the Equinix’s portfolio includes 260 data centers in 72 markets throughout the world, the company continues investing to meet rising demand. In a high-interest-rate environment, that investment has weighed on earnings, but that will likely change over the next 12 months.
At least that’s the opinion of analysts, who have increased their price targets significantly since the company’s earnings report in August, and also since the Federal Reserve’s announcement in September.
And like any REIT, you should pay attention to the dividend. The company has increased its dividend by an average of 10.84% in the last three years - that’s more than 4x the current rate of inflation. And with the anticipation of more stock price growth, EQIX looks like a solid buy.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
- Current Price
- $979.10
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $952.88 (2.7% Downside)
