While Nvidia, Tesla, Microsoft and other Magnificent Seven members grab more headlines, Argan crushes them all over the last 12 months. And now Argan stock is building a new buy point as it lands a spot on the Investor's Business Daily Leaderboard watchlist.
Argan also joined Nvidia and Meta on the latest monthly list of new buys by the best mutual funds. Such demand is driven by the fact that it is very much a data-center stock. So as the artificial intelligence craze spurs Wall Street interest in Nvidia, Microsoft, Meta and others, it also boosts interest in data centers and companies like Argan that fuel this power-hungry industry.
Argan Stock Vs. The Magnificent Seven
Based in Arlington, Va., Argan focuses on construction and related services to the power industry. The company also provides infrastructure for the industrial construction and telecommunications industries. It has more than 1,000 employees in the U.S., Ireland and the United Kingdom.
Over the last 12 months, the performance of Argan stock has dwarfed that of big-name AI stocks like Nvidia, Meta, Microsoft and more.
As of July 25, shares of Argan have soared 204%. Gains of the Mag 7 range from 54% for Nvidia to a 2% decline for Apple.
Argon also eclipses Nvidia, Meta and the others with a highest-possible 99 Composite Rating.
In its latest quarterly report on June 4, Argan posted earnings growth of 176%, to $1.60 per share. That marked a third straight quarter of triple-digit growth. Revenue rose 23% to $193.7 million.
In addition to joining Nvidia and Meta on the list of new buys by top funds, other signs of demand for Argon include a B Accumulation/Distribution Rating and a 1.6 up/down volume ratio.
| Company | Symbol | % Gain Last 12 Months* | Comp Rating | EPS Rating | RS Rating |
|---|---|---|---|---|---|
| Argan | 204 | 99 | 99 | 97 | |
| Nvidia | 54 | 98 | 99 | 92 | |
| Meta Platforms | 43 | 96 | 96 | 88 | |
| Tesla | 44 | 51 | 56 | 70 | |
| Amazon.com | 27 | 95 | 79 | 81 | |
| Microsoft | 21 | 94 | 92 | 85 | |
| Alphabet | 16 | 95 | 97 | 74 | |
| Apple | -2 | 74 | 85 | 27 | |
*As of July 25 |
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Nvidia Notches New High As Argan Builds New Breakout
While Nvidia has already secured a full-fledged membership on IBD Leaderboard and set yet another record high, Argan only recently joined the watchlist. The stock continues to work on a second-stage consolidation showing a 246.60 buy point.
On Monday, Argan came off the day's lows to post a slight gain, ending 4% shy of a breakout.
With earnings due Sept. 4, shares remain above both the 21-day exponential moving average and a rising 50-day line.
Trading has tightened up since the stock pulled back to reset its base count in January. While Argan's relative strength line has retreated from the 52-week high it hit in June, it is starting to rise again as a new breakout nears.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
