Equinix Inc. is a real estate investment trust focusing on interconnected data centers. It develops data center platforms and architecture for businesses involved in cloud software, information technology, financial services, and mobile services. The company offers secure networks and cloud-neutral data platforms and is leveraged to the secular transition away from on-premises data centers to cloud colocation centers. The company can face FX pressure. About 38% of 2025 revenues were in U.S. dollars. At the beginning of 2026, the company had over 500,000 global interconnections and just over 270 data centers on six continents. About 109 data centers are in the U.S., and there are 23 global xScale facilities. The company topped $9.2 billion in revenues in 2025, of which 45% were from operations in the Americas and 70% were from global colocation. As of the beginning of 2026, owned assets accounted for about 70% of recurring revenue. The company currently has robust expansion plans to meet AI demand and could double its data center capacity by 2029. EQIX shares are a component of the S&P 500. The current market cap is about $106 billion.

The major stock indices are all higher at midday on Friday. Most eyes were on Kevin Warsh this morning as he spoke at Jackson Hole. After his speech, in which he noted that inflation is too high, the financial press reported that the market now sees a 57.4% chance that the Fed will raise interest rates following its Sept. 16 meeting. By the end of the year, the likelihood of rates rising is now at 86.2%. Before the meeting, those chances were at 35.9% and 75.4%, respectively. But beyond rate speculation, Chairman Warsh was more talkative than many thought would be the case, and his comments are being viewed as confirmation that the economy is strong. And we agree. In a recent Argus Viewpoint report, Argus' Chief Economist Chris Graja, CFA, noted that the economy is resilient. Indeed, after almost six months of high gasoline prices, unemployment remains low and stock prices are high, helped by record earnings and healthy margins. Chris also detailed that indicators driven by a broad array of data point to an economy in which consumers are finding ways to make ends meet. Meanwhile, earnings season is essentially over and the results have been pretty much all and more that most investors could expect.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Equinix is one of the leading providers of cloud- and carrier-neutral data centers, offering colocation and interconnection services to hyperscalers and businesses. Equinix operates 270 properties in 77 metropolitan areas across 36 countries, serving over 10,000 customers. About 70% of Equinix’s revenue comes from renting physical space, which allows hyperscalers and other clients to store servers, data storage, and networking equipment. The other 30% of revenue is generated primarily through interconnection services (20%) and other managed services (10%).