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Iron Mountain (IRM) Gains But Lags Market: What You Should Know

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Iron Mountain (IRM - Free Report) closed at $47.07 in the latest trading session, marking a +1.66% move from the prior day. This move lagged the S&P 500's daily gain of 2.37%. At the same time, the Dow added 2.47%, and the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the real estate investment trust had lost 3.42% in the past month. In that same time, the Finance sector lost 5.94%, while the S&P 500 lost 4.82%.

Iron Mountain will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. The company is expected to report EPS of $0.96, up 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 16.52% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.78 per share and revenue of $5.19 billion. These totals would mark changes of +36.96% and +15.64%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Iron Mountain. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Iron Mountain currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Iron Mountain has a Forward P/E ratio of 12.25 right now. Its industry sports an average Forward P/E of 11.43, so we one might conclude that Iron Mountain is trading at a premium comparatively.

It is also worth noting that IRM currently has a PEG ratio of 3.06. 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. IRM's industry had an average PEG ratio of 1.88 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% 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.

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