Portfolio: Zacks Top 10

Iron Mountain Incorporated (NYSE: IRM) presents a compelling investment thesis as a global leader in information management services operating through a REIT structure, which provides shareholders tax benefits as corporate income remains tax-free as a passthrough entity. The company’s diversified business model combines defensive characteristics through its core records management operations with high-growth potential in data centers, digital solutions, and asset lifecycle management. It serves 95% of Fortune 1000 companies primary through its core Records and Information Management (RIM) segment, which provides physical document storage, digital data management, and secure destruction services. This is a highly attractive business due to its high component of recurring revenue from long-term contracts, high switching costs. However, IRM has also been able to harness the growth of AI compute demand by leveraging its warehouse space to build high-powered data centers. This business generated $620 million in 2024 and is expected to grow 30% in 2025 and beyond.

Iron Mountain services 240,000 clients across 1450 facilities, providing scale and network effects that few can match.

The outlook remains robust across all segments with long-term growth in data centers supported by the stability and reliability of the legacy document storage division.