Argan

AGX

Market cap $4.24B

GES, AGX, ESLT, MLKN and UBS have been added to the Zacks Rank #1 (Strong Buy) List on October 15, 2025.

JPMorgan raised Argan to overweight from neutral.

Stocks are having a strong start to the week, but it's not all just high-growth tech stocks making big moves. Shares of industrial engineering and construction company Argan (AGX 13.48%) are also soaring today.

Argan remains a 'buy' due to robust growth in its Power Industry Services segment and a surging project backlog. AGX reported Q2 revenue up 4.7% year-over-year, with net income rising from $18.2M to $25.3M and EBITDA up to $36.2M. Backlog soared to $1.95B, up 88.7% year-over-year, driven by demand from AI, data centers, EV infrastructure, and renewable energy projects.

Given a strong and sustainable backlog profile, consistent execution, and an improving profitability margin, it shows a compelling risk-reward profile for Argan, Inc. AGX stock provides investors with exposure to the tailwinds of a sustainable energy-demanding macroenvironment. My FCFE analysis suggests that the stock's intrinsic value ($290 per share) exceeds its current market price.

Investors need to pay close attention to AGX stock based on the movements in the options market lately.

Argan, Inc. is rated a buy, positioned to benefit from a multi-year power generation supercycle and a record $2 billion backlog. AGX's core competency in natural gas-fired power plants and proven execution provide a competitive moat amid surging US electricity demand. The company's zero-debt balance sheet and robust liquidity enable both capital returns and self-funded growth, enhancing shareholder value.

These names have outperformed the major indexes. One has gained 89% this year.

There are few things income investors like more than a meaty dividend raise. Argan (AGX 3.87%) declared one on Wednesday, and the market rewarded the construction company with a nearly 4% bump in its share price.

ARLINGTON, Va.--(BUSINESS WIRE)--Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces that its Board of Directors declared a 33% increase in the quarterly cash dividend, raising it from $0.375 to $0.50 per common share. The dividend will be payable on October 31, 2025, to stockholders of record at the close of business on October 23, 2025. David Watson, President and Chief Executive Officer of Argan commented, “As Argan continues to deliver strong growth and profitability, and wit.