Trade-Ideas LLC identified

Iron Mountain

(

IRM

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Iron Mountain as such a stock due to the following factors:

  • IRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.9 million.
  • IRM has traded 146,215 shares today.
  • IRM is trading at 3.63 times the normal volume for the stock at this time of day.
  • IRM is trading at a new low 3.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on IRM:

Iron Mountain Incorporated, together with its subsidiaries, provides storage and information management services in North America, Europe, Latin America, and the Asia Pacific. The stock currently has a dividend yield of 4.7%. IRM has a PE ratio of 23. Currently there are 2 analysts that rate Iron Mountain a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Iron Mountain has been 2.3 million shares per day over the past 30 days. Iron Mountain has a market cap of $8.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.79 and a short float of 6% with 6.79 days to cover. Shares are up 52.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Iron Mountain as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 57.89% and other important driving factors, this stock has surged by 33.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IRM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 52.7% when compared to the same quarter one year prior, rising from $41.10 million to $62.77 million.
  • IRM's revenue growth trails the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 0.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 1371.66% to $81.12 million when compared to the same quarter last year. In addition, IRON MOUNTAIN INC has also vastly surpassed the industry average cash flow growth rate of -65.75%.
  • IRON MOUNTAIN INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IRON MOUNTAIN INC reported lower earnings of $0.58 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($1.19 versus $0.58).

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