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Energy Service Provider Argan Shines with Impressive Growth
Argan (AGX), a leading energy service provider, has caught the attention of investors with its remarkable 193% growth in 2024. The company’s stock has been climbing steadily, nearing its all-time high reached in late November. As a key player in the construction and telecommunications industries, Argan provides power and engineering services to data centers, which are expected to drive strong demand for energy in the coming years.
Data Centers Fueling Energy Demand
The increasing adoption of artificial intelligence is driving the need for data center upgrades, requiring large amounts of power for AI computations. This trend is expected to continue, making Argan a promising investment opportunity.
Argan’s Impressive Performance
The IBD 50 stock has been consistently outperforming the market, with a stellar A+ IBD Group Relative Strength Rating. Its Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks. Moreover, its Timeliness Rating of A shows potential relative price performance over the next 12 months.
Earnings and Revenue Growth
Argan reported impressive earnings and revenue growth for its fiscal third quarter, with profits soaring 400%. Its sales growth has averaged around 56% over the last three quarters, with estimates showing a 29% increase in the fiscal fourth quarter and a 55% lift in the fiscal first quarter.
Cup Base Formation
Argan stock is currently in a newly formed cup base with a 165.33 buy point, according to MarketSurge pattern recognition. Investors should watch for a potential handle to form with a 160.44 entry.
Institutional Buying and Relative Strength
The energy stock has climbed around 14% so far this year, outperforming the S&P 500 benchmark index. Its relative strength line reached a 52-week high, indicating strong institutional buying.
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