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Iron Mountain (IRM) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Iron Mountain (IRM) closed at $34.18, marking a -0.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.19%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.81%.

Prior to today's trading, shares of the real estate investment trust had gained 9.94% over the past month. This has outpaced the Finance sector's gain of 1.46% and the S&P 500's gain of 0.56% in that time.

Wall Street will be looking for positivity from IRM as it approaches its next earnings report date. This is expected to be October 31, 2019. In that report, analysts expect IRM to post earnings of $0.58 per share. This would mark year-over-year growth of 5.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.08 billion, up 1.56% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.27 per share and revenue of $4.29 billion, which would represent changes of -1.3% and +1.45%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for IRM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. IRM is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, IRM is holding a Forward P/E ratio of 15.14. For comparison, its industry has an average Forward P/E of 16.42, which means IRM is trading at a discount to the group.

Investors should also note that IRM has a PEG ratio of 3.97 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Other was holding an average PEG ratio of 3.39 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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