The Argan Stock Rally Still Isn't Over, Even After the Stock Has Nearly Doubled This Year
The energy project specialist is enjoying a multiyear tailwind as demand soars for electricity to run data centers.
The Argan Stock Rally Still Isn't Over, Even After the Stock Has Nearly Doubled This Year
Overview
Even after a pullback this past week, shares of Argan (NYSE: AGX) are up by almost 90% year to date as the AI data center build-out has boosted demand for the company's services. Argan specializes in designing and building power-generation plants of the varieties that are in high demand to supply AI infrastructure with electricity. This positioning amid what looks like it will be a prolonged period of high capital expenditures for AI infrastructure suggests that the stock's rally isn't over.
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In its fiscal 2026 (which ended Jan. 31), Argan more than doubled its backlog from $1.4 billion to $2.9 billion. The company has three segments -- teledata, industrial, and power -- and the backlogs in all three have at least doubled over the past year. This continued a strong growth trend: Its backlog almost doubled from fiscal 2024 to fiscal 2025.
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Originally published at www.fool.com.
