Back to top

Image: Bigstock

Iron Mountain (IRM) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Iron Mountain (IRM - Free Report) closed at $48.69, marking a +1.06% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.88%. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the real estate investment trust had lost 9.81% over the past month. This has lagged the Finance sector's loss of 9.44% and the S&P 500's loss of 8.06% in that time.

Wall Street will be looking for positivity from Iron Mountain as it approaches its next earnings report date. The company is expected to report EPS of $0.93, up 9.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, up 16.12% from the year-ago period.

IRM's full-year Zacks Consensus Estimates are calling for earnings of $3.78 per share and revenue of $5.2 billion. These results would represent year-over-year changes of +36.96% and +15.82%, respectively.

Investors should also note any recent changes to analyst estimates for Iron Mountain. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Iron Mountain is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Iron Mountain is currently trading at a Forward P/E ratio of 12.75. This represents a discount compared to its industry's average Forward P/E of 12.76.

Meanwhile, IRM's PEG ratio is currently 3.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. IRM's industry had an average PEG ratio of 2.38 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Iron Mountain Incorporated (IRM) - free report >>

Published in