Dallas, Texas-based Digital Realty Trust, Inc. (DLR) is a real estate investment trust (REIT) that owns, operates, and develops a vast portfolio of data centers. Valued at a market cap of $61.8 billion, the company supports mission-critical infrastructure for over 5,000 customers, including hyperscale cloud providers, financial institutions, and global enterprises.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and DLR fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - specialty industry. In recent years, the company has pivoted to aggressively meet the surging demand for AI and high-density computing workloads, expanding its global footprint into emerging markets, while leveraging strategic joint ventures to manage the intensive capital requirements of its next-generation infrastructure build-out.
This REIT is currently trading 2% below its 52-week high of $184.79, reached on Feb. 12. Shares of DLR have rallied 9.9% over the past three months, outpacing the Dow Jones Industrial Average’s ($DOWI) 1.9% drop during the same time frame.
Moreover, on a YTD basis, shares of DLR are up 17%, compared to DOWI’s 2.1% loss. In the longer term, DLR has soared 22% over the past 52 weeks, outperforming DOWI’s 10.5% uptick over the same time frame.
To confirm its bullish trend, DLR has been trading above its 200-day moving average since early February and has remained above its 50-day moving average since mid-January.
On Feb. 5, DLR delivered stronger-than-expected Q4 results, sending its shares up 4.2% in the following trading session. Due to higher rental revenues, the company’s total operating revenue increased 13.8% year-over-year to $1.6 billion, surpassing consensus estimates by 3.2%. Moreover, its core FFO came in at $1.86 per share, up 7.5% from the same period last year and 1.6% ahead of analyst expectations.
DLR has outperformed its rival, Equinix, Inc. (EQIX), which gained 8.6% over the past 52 weeks. However, it has lagged EQIX’s 23.6% YTD rise.
Given DLR’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 32 analysts covering it, and the mean price target of $194.24 suggests an 8.4% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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