Based in Portsmouth, New Hampshire, Iron Mountain Incorporated (IRM) specializes in records management, data solutions, and information destruction services. With a market cap of $33.7 billion, the company caters to diverse sectors such as banking, energy, entertainment, healthcare, insurance, legal, life sciences, retail, and pharmaceuticals.
Shares of IRM have outperformed the broader market considerably over the past year. IRM has gained 84.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.4%. In 2024, IRM stock is up 64.2%, surpassing SPX’s 23.1% 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 10.1% over the past year. Moreover, IRM’s double-digit gains on a YTD basis outshine the ETF’s 2.4% returns over the same time frame.
IRM's strong performance is driven by its robust results in the storage and service segments, along with growth in the data center business.
However, on Nov. 6, IRM stock dipped 9% after releasing its Q3 earnings. It posted an FFO of $1.13 per share, slightly beating the average analyst estimate of $1.11 per share. The company had a net loss of $33.6 million, or 11 cents per share. Revenue was $1.56 billion, in line with Street forecasts.
For the current fiscal year, ending in December, analysts expect IRM’s EPS to grow 1.2% to $4.17 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 eight analysts covering IRM stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” and one “Strong Sell.”
This consensus is more bullish than a month ago when five analysts suggested a “Strong Buy” for the stock.
On October 17, Wells Fargo & Company (WFC) analyst Eric Luebchow maintained an “Overweight” rating on Iron Mountain and raised the price target from $120 to $135.
The mean price target of $122 represents a 6.2% premium to IRM’s current price levels. The Street-high price target of $140 suggests an upside potential of 21.9%.
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