Earnings have been spectacular. In fact, third-quarter earnings are expected to grow 29% over last year’s quarter. Meanwhile, Iron Mountain Inc. (IRM) has pulled back and looks attractive since it’s back to the same level it was in April, writes Tom Hutchinson, editor of Cabot Dividend Investor.
Oil prices and interest rates are still sky high. Most stocks are struggling as a result. But help is on the way. Its earnings season again.
Iron Mountain Inc. (IRM)
We’re on track for three straight quarters of 20%-plus earnings growth – and eight consecutive quarters of double-digit growth. Another strong earnings season could at least hold down the fort for most stocks until oil prices come back down.
With Iron Mountain, it looks like the descent has stopped as the stock has been moving sideways since the beginning of September. It’s getting lumped in with the overall AI trade despite reporting earnings that beat expectations with record results.
Revenue was up 19% and adjusted funds from operations grew 17% over last year’s quarter. The Real Estate Investment Trust (REIT) also raised guidance for the full year. The strong results were driven by better than 50% growth in its booming data center and asset lifecycle management businesses collectively.
These sectors are crucial to future growth. The business is reflecting the growth that has driven spectacular returns over the past several years, and the future continues to look bright. It should be worth sticking with despite the recent performance.
Recommended Action: Buy IRM.
