Is Iron Mountain (IRM) Stock Outperforming the Dow in 2025?
Introduction
When investors think of outperforming the Dow Jones Industrial Average (DOWI), they typically look at tech giants or explosive growth stocks. But in 2025, a less flashy but quietly consistent player has been gaining attention: Iron Mountain Incorporated (NYSE: IRM).
This large-cap Real Estate Investment Trust (REIT) specializing in data and information management has shown surprising strength over the past year—especially compared to the broader market. But is IRM stock truly outperforming the Dow? Let’s dig in.
What Is Iron Mountain (IRM)?
Headquartered in Portsmouth, New Hampshire, Iron Mountain Inc. offers services ranging from physical records storage to data center solutions and secure information destruction. The company serves a wide array of industries including healthcare, finance, law, entertainment, and pharmaceuticals.
With a market cap of $30.1 billion, IRM solidly qualifies as a large-cap stock and holds a significant position in the REIT - Specialty sector. Its hybrid model—combining legacy physical document storage with next-gen data center growth—offers a blend of stability and innovation.
IRM Stock vs. the Dow: Short-Term and Long-Term Performance
Let’s look at IRM’s recent performance in contrast with the Dow Jones Industrial Average:
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Last 3 months: IRM stock gained 15.3%, while the Dow posted marginal gains.
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Year-to-date (YTD): IRM has declined 2.2%, slightly underperforming the Dow’s own minor losses.
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Past 52 weeks: IRM stock has risen 16.4%, outperforming the Dow’s 9.2% return during the same period.
📈 Verdict: Over the past 3 to 12 months, IRM has outpaced the Dow, especially in recent quarters. However, its YTD dip reflects some volatility amid broader market uncertainty.
Technical Analysis: Mixed Signals for IRM
Technically, IRM is in a somewhat neutral to bullish zone:
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Below 200-day MA: Since late January, the stock has consistently traded below its 200-day moving average, signaling long-term bearish sentiment.
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Above 50-day MA: Since late April, IRM has held above its 50-day moving average, suggesting short-term momentum is improving.
The divergence between long- and short-term moving averages implies a transition phase—with bulls regaining control, but caution is still warranted.
What’s Driving IRM’s Performance?
1. Resilient Cash Flow from Storage Business
Iron Mountain’s traditional records storage business—despite being physical and not digital—is far from obsolete. In fact, it continues to provide a steady stream of cash flow, thanks to sticky clients and regulated industries that still require paper records.
2. Explosive Growth in Data Center Segment
The real growth engine for IRM, though, is its data center business. The company has been expanding aggressively through:
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Strategic acquisitions of data center assets
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Organic development of high-demand, high-security facilities
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Integration of AI-friendly, power-dense infrastructure
In fact, IRM’s growth businesses grew over 20% YoY, reflecting the increasing demand for secure cloud and hybrid storage.
3. Capital Recycling and Project Matterhorn
IRM’s ongoing Project Matterhorn focuses on reallocating capital toward high-growth segments. By selling off non-core assets and reinvesting into data-driven operations, the company is optimizing returns without stretching its balance sheet.
This strategic move has enhanced operational efficiency and investor confidence.
Recent Earnings: A Slight Miss, But Still Solid
On May 1, 2025, IRM reported:
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Adjusted FFO: $1.17 per share (beat estimates of $1.16)
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Revenue: $1.59 billion (slightly missed the $1.60 billion forecast)
Despite the revenue miss, the market responded positively, with IRM shares closing up more than 2% post-earnings.
Guidance for Full Year 2025:
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Adjusted FFO: $4.95–$5.05 per share
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Revenue: $6.7–$6.9 billion
These numbers reaffirm Iron Mountain’s stability and long-term profitability, even if short-term revenue numbers occasionally wobble.
IRM vs. Digital Realty (DLR): REIT Sector Comparison
In the REIT - Specialty segment, Digital Realty Trust, Inc. (DLR) is often viewed as Iron Mountain’s closest competitor.
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DLR YTD performance: Slight loss
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DLR 52-week gain: 18.2%
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IRM 52-week gain: 16.4%
While DLR leads in overall sector performance, IRM’s balanced model offers lower volatility and better exposure to hybrid infrastructure—particularly for investors who value dividends and moderate growth.
Analyst Ratings: Wall Street Is Bullish
According to recent data:
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9 analysts currently cover IRM stock.
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The consensus rating is: Strong Buy
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The average price target: $115.78
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Upside potential from current price: ~12.7%
This bullish sentiment stems from IRM’s diversified revenue streams, expansion strategy, and solid FFO performance—all key metrics that REIT investors prioritize.
Should You Buy IRM Stock in 2025?
✅ Reasons to Buy:
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Strong performance in recent quarters
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Reliable dividends from core storage biz
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Fast-growing data center exposure
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Strategic capital allocation (Project Matterhorn)
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Analyst consensus suggests more upside
⚠️ Risks to Watch:
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Still trading below 200-day MA
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Slight revenue miss in last quarter
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Competitive pressure from specialized REITs like DLR
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Sensitive to interest rate changes (like most REITs)
Final Verdict: Is IRM Outperforming the Dow?
Yes—over the past 3 and 12 months, Iron Mountain stock has outperformed the Dow Jones Industrial Average.
Though it’s lagging slightly YTD, its growth momentum, diversified model, and analyst backing indicate that IRM is well-positioned to keep leading the broader market—especially as demand for hybrid storage and secure data solutions expands.
For long-term investors seeking a stable REIT with growth upside, IRM may be a smart addition to your 2025 portfolio.