Iron Mountain’s Impressive Stock Surge: A Closer Look
Strong Performance Against Industry Benchmarks
Based in Portsmouth, New Hampshire, Iron Mountain Incorporated (IRM) focuses on records management, data solutions, and information destruction services. The company boasts a market cap of $33.7 billion and serves various sectors, including banking, energy, entertainment, healthcare, insurance, legal, life sciences, retail, and pharmaceuticals.
Over the past year, IRM’s shares have significantly outperformed the broader market. The stock has seen an increase of 84.7%, while the S&P 500 Index ($SPX) has risen by 30.4%. In 2024, IRM shares grew 64.2%, exceeding SPX’s 23.1% YTD gain.
Comparative Gains Highlight IRM’s Strength
Comparing against the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR), IRM’s performance stands out even more. The ETF has gained about 10.1% over the past year, while IRM’s year-to-date growth reflects double-digit increases, overshadowing SRVR’s mere 2.4% rise.
The primary drivers of IRM’s success are its strong results in storage and service segments, coupled with growth in its data center operations.
Mixed Earnings Report and Analyst Ratings
On November 6, IRM stock experienced a 9% drop following its Q3 earnings report. The company reported a funds from operations (FFO) of $1.13 per share, slightly exceeding the average analyst estimate of $1.11. Despite this, IRM reported a net loss of $33.6 million, or 11 cents per share, with revenue of $1.56 billion aligning with forecasts.
Looking ahead, analysts project IRM’s earnings per share (EPS) to grow 1.2% to $4.17 on a diluted basis for the current fiscal year ending in December. Notably, IRM has surpassed consensus earnings estimates in each of the last four quarters, indicating a solid track record.
Among the eight analysts currently covering IRM, the consensus rating is a “Moderate Buy.” This is comprised of six “Strong Buy” ratings, one “Moderate Buy,” and one “Strong Sell.”
Recent sentiments are more optimistic than just a month ago when five analysts supported a “Strong Buy” for IRM shares.
On October 17, Wells Fargo & Company (WFC) analyst Eric Luebchow maintained an “Overweight” rating on IRM, raising the price target from $120 to $135.
The average price target has now reached $122, indicating a potential upside of 6.2% from current prices. Additionally, the highest price target stands at $140, suggesting a more substantial upside of 21.9%.
On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
