Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified Iron Mountain ( IRM) as a "dead cat bounce" (down big yesterday but up big today) 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 $76.4 million.
- IRM has traded 1.3 million shares today.
- IRM is up 4.6% today.
- IRM was down 9.5% yesterday, not including a REIT-conversion, special distribution payable November 4, 2014.
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More details on IRM:
Iron Mountain Incorporated, together with its subsidiaries, provides storage and information management services primarily in North America, Europe, Latin America, and the Asia Pacific. The stock currently has a dividend yield of 5.4%. IRM has a PE ratio of 18.4. Currently there are 4 analysts that rate Iron Mountain a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Iron Mountain has been 1.5 million shares per day over the past 30 days. Iron Mountain has a market cap of $6.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.89 and a short float of 8.6% with 5.83 days to cover. Shares are up 5.1% year-to-date as of the close of trading on Friday.
TheStreet Quant Ratings rates Iron Mountain as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- IRM's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 907.14% and other important driving factors, this stock has surged by 25.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, IRON MOUNTAIN INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 930.3% when compared to the same quarter one year prior, rising from $26.37 million to $271.64 million.
- Net operating cash flow has increased to $139.96 million or 30.44% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.98%.
- You can view the full Iron Mountain Ratings Report.