AGX Should I Buy
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Argan Inc (AGX) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is trading at a high valuation, insiders and hedge funds are selling significantly, and the stock trend indicates potential short-term declines. While the company has strong financial metrics and a solid backlog, the lack of positive trading signals and the recent analyst downgrade suggest holding off on purchasing at this time.
The MACD is positive and expanding, indicating bullish momentum. The RSI is neutral at 71.672, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading below its previous close, and key resistance levels (R1: 429.418, R2: 456.913) are higher than the current price, suggesting limited immediate upside.
The company has a $3B backlog providing visibility for the next 2-3 years. Financial metrics show YoY improvements in net income (+9.74%), EPS (+8.50%), and gross margin (+8.35%).
Stock trend analysis predicts a decline of -3.21% in the next week and -3.17% in the next month.
In Q3 2026, revenue dropped by -2.28% YoY to $251.15M, but net income increased by 9.74% YoY to $30.74M. EPS rose by 8.50% YoY to 2.17, and gross margin improved by 8.35% YoY to 18.69%.
Lake Street downgraded the stock to Hold from Buy, citing high valuation despite strong execution and margins. The price target was raised to $325 from $260, reflecting peak estimates.
