With a market cap of $46.3 billion, Digital Realty Trust, Inc. (DLR) specializes in owning, acquiring, repositioning, and managing technology-focused real estate. The Austin, Texas-based company provides data center, colocation, and interconnection solutions to a diverse mix of domestic and international tenants across its global portfolio of data centers spanning North America, Europe, Asia, and Australia.
Companies worth $10 billion or more are generally described as "large-cap stocks," Digital Realty fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the specialty REITs industry. Its operations are concentrated in major metropolitan areas where demand for data center and technology infrastructure is highest.
Digital Realty has slipped 5.4% from its 52-week high of $198 achieved on Nov. 29. DLR stock has soared 18.2% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 8% gains during the same time frame.
Digital Realty has also outperformed DOWI over the longer term. DLR gained 38.9% over the past 52 weeks and 39.1% in 2024, compared to DOWI’s 21.3% gains over the past year and 17.1% returns on a YTD basis.
To confirm the bullish trend, DLR has consistently traded above its 200-day moving average over the past year and above its 50-day moving average since early September.
Digital Realty's stock jumped 9.6% after posting its strong Q3 earnings report on Oct. 24. Core funds from operations per share rose 3.1% from the prior year to $1.67, aligning with expectations, while an increased 2024 FFO outlook boosted investor confidence further.
Digital Realty’s top rival, Equinix, Inc. (EQIX), has underperformed DLR. EQIX gained 22.1% over the past 52 weeks and 20.8% in 2024.
Among the 25 analysts covering the DLR stock, the consensus rating is a “Moderate Buy.” The stock currently trades above its mean target price of $178.74.
