Iron Mountain (NYSE: IRM), the storage giant, is up for the last week, month quarter, and six months of market action (chart below). For 2014, Iron Mountain is up nearly 3 percent. But for the last year, Iron Mountain is down by nearly 10 percent.
There are many reasons for investors to be bullish about the future of Iron Mountain.
Growth is on a very strong trend is a major factor. This year, earnings-per-share growth is down. Next year it is expected to rise by 11.15 percent. Over the next five years, earnings-per-share growth for Iron Mountain is expected to be at 13.50 percent by the Wall Street analyst community.
Much of that growth will come from the pipeline integrity management program of Iron Mountain.
These services are needed by oil and natural gas pipeline companies, among others. Due to the train accidents carrying fuel, pipelines become more attractive for transporting oil and natural gas. That makes the stock of Iron Mountain even more appealing.
So does the high dividend yield.
At present, the dividend yield for a member of the Standard & Poor’s 500 Index (NYSE: SPY) is under 2 percent. The dividend yield for Iron Mountain is almost 3.50 percent. The company has a strong dividend history, too. With the stock price rising, the dividend should be secure.
It could even rise more as the gross margin for Iron Mountain is so strong at over 50 percent!
Iron Mountain is now trading at just under $31 a share. Even with the most recent bullish activity, it is still under the mean analyst target price of $32.25 for the next year of market action. Institutional investors own over 90 percent of the shares of Iron Mountain, which is another bullish indicator. When institutional investors such as mutual funds and pension groups are bullish with all of their research resources, that is a positive sign for individual investors.