Is Iron Mountain Inc (IRM) a safe stock to invest in?

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In the wake of the pandemic, people are using technology more than ever whether it is zooming at home or watching Netflix. Consequently, all these technology companies collect data from users in order to help improve their experience or even sell it to 3rd parties. Gathering all this data means that companies have the responsibility to protect the consumer by keeping their data safe from hackers or other entities. 

Iron Mountain Inc(IRM) is an international company that "stores, protects and manages, information and assets". Over 7,500 companies use the services provided by Iron Mountain and out of the 7,500 companies, a majority of the companies are in the Fortune 1000.

As the world becomes digitalized, more companies will need to use the services provided by IRM which will help their future sales and show that they have the demand in the future. 

With a juicy dividend yield of 5.78%, it has similar dividend yields of oil companies, but without the volatility of oil companies. Not many companies offer dividends this high so even if the IRM stock doesn't change much during the year, you still will get a 5% return. 

Currently, 5 out of 9 analysts rate IRM a buy with 1 analyst even rating it an outperform(CNN Money). Also, they have been beating expected EPS 3 out of last the 4 quarters and their EPS has an annual growth of 18% the past 3 years which shows their strong performance and their growing potential. With Q2 earnings coming on August 5th, it might be better to get in now since beating the projected earnings will boost their stock.

IRM has been showing a strong upward trend in earnings with their EPS being on the rise from 2016-2018 going from $0.42 to $1.27 (2019-2021 data not available).

Looking at the stock price, they are currently priced at $42.34 and they have been down around 8% the past month which provides an opportunity for investors to get into the stock before it starts rallying. 


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