ARGAN INC (NYSE:AGX) – A Strong Contender for Growth Investors

ARGAN INC (NYSE:AGX) stands out as a compelling pick for investors following Louis Navellier’s growth-focused strategy. The company meets multiple criteria outlined in The Little Book That Makes You Rich, demonstrating strong earnings momentum, expanding margins, and robust cash flow growth. Below, we examine why AGX fits this approach.

Key Strengths of AGX

• Earnings Growth & Surprises: AGX reported a staggering 155.65% year-over-year EPS growth, far exceeding expectations. Over the last four quarters, it delivered an average earnings surprise of 48.32%, with all four reports beating estimates.
• Revenue Expansion: Sales grew 52.48% over the past year, with quarterly revenue up 41.28% compared to the same period last year.
• Margin Improvement: Operating margins expanded by 58.97%, reflecting efficient cost management alongside revenue growth.
• Strong Cash Flow: Free cash flow surged 41.10% year-over-year, reinforcing financial flexibility.
• High Return on Equity: AGX’s 24.29% ROE outperforms most peers in the Construction & Engineering industry.

Valuation & Risks

While AGX excels in growth and profitability, its valuation appears stretched with a P/E of 34.45, above the S&P 500 average. However, its strong fundamentals may justify the premium if growth persists.

For a deeper dive, review the full fundamental analysis of AGX.

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Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.