Portsmouth, New Hampshire-based Iron Mountain Incorporated (IRM) provides records management, data management solutions, and information destruction services. Valued at $32.9 billion by market cap, the company serves banking, energy, entertainment, health care, insurance, law firm, life science, retail, and pharmaceutical industries.
Shares of this global leader in storage and information management have outperformed the broader market considerably over the past year. IRM has gained 89.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024, IRM stock is up 61.2%, surpassing SPX’s 16.8% rise on a YTD basis.
Zooming in further, IRM’s outperformance looks more pronounced compared to the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR). The exchange-traded fund has gained about 7% over the past year. Moreover, IRM’s double-digit gains on a YTD basis outshine the ETF’s marginal losses over the same time frame.
IRM’s overall performance can be attributed to its solid performance in the storage and service segments as well as in the data center business.
On Aug. 1, IRM shares closed up more than 6% after reporting its Q2 results. Its adjusted funds from operations of $1.08 surpassed Wall Street estimates of $1.06. IRM’s revenue was $1.53 billion, topping Wall Street forecasts of $1.51 billion. IRM affirmed full year 2024 guidance and expects funds from operations to be between $4.39 and $4.51, and revenue is expected to be between $6 billion and $6.2 billion, above the consensus of $6.1 billion.
For the current fiscal year, ending in December, analysts expect IRM’s EPS to grow 2.4% to $4.22 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the seven analysts covering IRM stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and one “Strong Sell.”
On Aug. 2, Barclays PLC (BCS) analyst Brendan Lynch maintained a “Buy” rating on IRM with a price target of $91.
While IRM currently trades above its mean price target of $102.12, the Street-high price target of $121 suggests an upside potential of 7.3%.
On the date of publication, Neha Panjwani 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.
