Equinix Stock Has A Strong Chance Of Upside Over The Next Month

Equinix stock (NASDAQ: EQIX) dropped almost 3% in the last five trading days and currently trades close to $799 per share. Equinix, a data center real estate investment trust, recently announced a $3.9 billion agreement for additional joint ventures in the form of limited liability partnerships with GIC (Singapore’s sovereign wealth fund). Its stock price has seen some volatility over the last few trading days after the news of the deal.

But will EQIX stock continue its downward trajectory over the coming weeks, or is a recovery in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for EQIX stock average close to 3.5% in the next one-month (21 trading days) period after experiencing a 3% decline over the last one week (five trading days) period. Also, there is a 67% chance that the stock will give positive returns over the next one-month period.

But how would these numbers change if you are interested in holding EQIX stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test Equinix stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!

MACHINE LEARNING ENGINE – try it yourself:

IF EQIX stock moved by -5% over five trading days, THEN over the next 21 trading days, EQIX stock moves an average of 4.4 percent with a 68% probability of positive returns.

Some Fun Scenarios, FAQs & Making Sense of Equinix Stock Movements:

Question 1: Is the average return for Equinix stock higher after a drop?

Answer:

Consider two situations,

Case 1: Equinix stock drops by -5% or more in a week

Case 2: Equinix stock rises by 5% or more in a week

Is the average return for Equinix stock higher over the subsequent month after Case 1 or Case 2?

EQIX stock fares better after Case 1, with an average return of 4.4% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.8% for Case 2.

In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.

Try the Trefis machine learning engine above to see for yourself how Equinix stock is likely to behave after any specific gain or loss over a period.

Question 2: Does patience pay?

Answer:

If you buy and hold Equinix stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.

Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!

For EQIX stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:

Question 3: What about the average return after a rise if you wait for a while?

Answer:

The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.

EQIX’s returns over the next N days after a 5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:

It’s pretty powerful to test the trend for yourself for Equinix stock by changing the inputs in the charts above.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016.

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