Trade-Ideas: Iron Mountain (IRM) Is Today's Post-Market Leader Stock

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 post-market leader 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 $75.2 million.
  • IRM is up 4.3% today from today's close.

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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 5.1%. IRM has a PE ratio of 19.6. Currently there are 4 analysts that rate Iron Mountain a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Iron Mountain has been 2.6 million shares per day over the past 30 days. Iron Mountain has a market cap of $7.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.50 and a short float of 7.2% with 5.45 days to cover. Shares are up 22.4% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • IRM's revenue growth trails the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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 Real Estate Investment Trusts (REITs) 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.
  • Compared to its closing price of one year ago, IRM's share price has jumped by 31.57%, exceeding the performance of the broader market during that same time frame. 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.
  • IRON MOUNTAIN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, IRON MOUNTAIN INC reported lower earnings of $0.52 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($1.38 versus $0.52).
  • The gross profit margin for IRON MOUNTAIN INC is rather high; currently it is at 57.10%. Regardless of IRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IRM's net profit margin of 0.00% is significantly lower than the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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