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Actionable news in DLR: DIGITAL REALTY TRUST Inc,

The quietly surging stock that’s been in the market’s sweet spot

One of the best-performing stocks in the S&P 500 is a little-followed company called Digital Realty.

As a real estate investment trust that deals with technology-related real estate, it has benefited from both the rise in cloud computing and from low interest rates.

And as stocks hit all-time highs, Digital Realty has been one of the best performers since May 2015, when the S&P was last at these levels, rising nearly 70 percent in that time.

Like all REITs, Digital Realty invests in real estate and passes along the vast majority of income to its investors. But instead of leasing out office space or apartment buildings, this company leases out data centers to provide infrastructure for cloud platform services. Companies like Amazon and Microsoft are among its clients.

As more people start using cloud services, data center REITs, like Digital Realty, Equinix and CoreSite Realty, are in high demand, said Jordan Sadler, analyst with KeyBanc Capital Markets. The increased demand for mobile data and mobile streaming video also adds to the company's growth.

"They are headed in...