We recently compiled a list of the 12 Best REIT Stocks to Buy Now. In this article, we are going to take a look at where Equinix Inc. (NASDAQ:EQIX) stands against the other REIT stocks.
The US Real Estate So Far in 2025
While the mortgage rates have risen despite the Fed cutting rates, potential homebuyers are left with the choice to either postpone the homebuying or resort to current mortgage rates as well as elevated home prices. According to Freddie Mac, the 30-year fixed mortgage rate went above 7% in the week ended January 16. Experts are convinced that mortgage rates need to drop to 6% or lower for the housing market to come to life and rates above 7% deem the market dead where nobody is going to buy. Lee Baker, a member of CNBC’s Financial Advisor Council, reiterated the adverse situation saying:
“If what you’re hoping or wishing for is an interest rate at 4%, or housing prices to drop 20%, I personally don’t think either one of those things is remotely likely in the near term”
Another issue of concern has been the devastating wildfires in LA which have deepened its already existing housing shortage. Redfin reported that almost one of every six homes within the perimeters of the Palisades and Eaton fires have either been damaged, destroyed or are inaccessible. Meanwhile, the prices in the rental markets with more displaced turning to them.
According to the New York Times, the affectees would find it hard to find accommodation in a metro area that already had a shortage of around 337,000 homes, as of 2022. Data from the Los Angeles Department of Building and Safety reveals that apartment units approved by the city of Los Angeles dropped to a 10-year low in 2024. Victor M. Gordo, the mayor of Pasadena, exclaimed the issue at hand as follows:
“One of the biggest challenges ahead will be getting people who lost their homes into permanent, long-term housing”
Our Methodology:
In order to compile a list of the 12 best REIT stocks to buy now, we first use a stock screener to make an extended list of the relevant companies with the highest market caps. Moving on, we shortlisted the top 12 stocks from our list which had the highest number of hedge fund holders. The 12 best REIT stocks to buy now have been arranged in ascending order of their hedge fund holders as of Q3.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of IT professionals working on a digital platform, indicating the company’s agile digital services.
Equinix Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix Inc. (NASDAQ:EQIX) serves as the world’s digital infrastructure company. The company was founded in 1998 as a vendor-neutral multitenant data center provider and serves 73 markets across 34 countries, enabling businesses to scale across the world’s largest network of interconnected data centers.
An unrivaled global reach and differentiated global platform with $41 billion of invested capital is the EQX competitive advantage. The REIT gives customers access to 2,000 network services, 3,000 cloud and IT services, and more than 400 content and digital media services. While the robust demand for AI-enabling digital infrastructure from diverse customers strengthens the firm’s leadership position, Equinix continues to make extensive investments across its global operations to support customers’ digital infrastructure needs with 57 major projects underway across 22 countries, as of 2024’s third quarter.
EQX has the privilege of witnessing 87 consecutive quarters of top-line revenue growth, the longest streak of any S&P500 company. Equinix Inc. (NASDAQ:EQIX) is well positioned to capitalize on future opportunities with digital infrastructure becoming crucial to delivering services globally.
Overall EQIX ranks 2nd on our list of the best While we acknowledge the potential of EQIX as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than EQIX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
