Iron Mountain Inc (IRM): Today's Featured Computer Software & Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Iron Mountain ( IRM) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Iron Mountain fell 51 cents (-1.5%) to $32.59 on heavy volume. Throughout the day, 2.1 million shares of Iron Mountain exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $32.30-$33.25 after having opened the day at $33.08 as compared to the previous trading day's close of $33.10. Other companies within the Computer Software & Services industry that declined today were: Kingtone Wirelessinfo Solution ( KONE), down 14.7%, THQ ( THQI), down 12%, Cover-All Technologies ( COVR), down 9.6%, and Recon Technology ( RCON), down 6.7%.
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Iron Mountain Incorporated, together with its subsidiaries, provides information management services primarily in North America, Europe, Latin America, and the Asia Pacific. Iron Mountain has a market cap of $5.75 billion and is part of the technology sector. The company has a P/E ratio of 24.9, above the S&P 500 P/E ratio of 17.7. Shares are up 8.1% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Iron Mountain a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Iron Mountain as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, China Digital TV ( STV), up 49.7%, Commtouch Software ( CTCH), up 13.5%, Merge Healthcare ( MRGE), up 9.9%, and Salesforce.com ( CRM), up 8.8%, were all gainers within the computer software & services industry with VMWare ( VMW) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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