Ive been looking at the stock Argan (AGX) and trying to figure out if it’s still worth entering at current levels. From my understanding, the company has strong demand from power infrastructure (data centers, AI, energy projects, etc.), and that seems to be a big driver behind its huge run recently. The stock is up by a lot over the past year and even multiple years , which makes me wonder if most of the upside is already priced in.
A couple of concerns that I would like to ask:
Firstly the valuation, it seems the P/E is relatively high (around 30–40+ depending on the source), and some analyst targets suggest limited upside or even slight downside from current prices.
Concerning its Cyclicality / volatility, since a lot of their business is tied to energy and large infrastructure projects, I’m guessing macro factors (rates, geopolitics, energy demand) could make earnings quite volatile.
Regarding the Recent momentum, the stock has already run up by a lot is this still early in the cycle, or are we chasing here? On the other hand, I do see the bullish case with their strong backlog and growing demand for power (especially with AI/data centers driving electricity needs) .
So I’m trying to understand: At today’s price, will AGX still be a reasonable long-term buy, or is it more of a “wait for a pullback” situation?
Would appreciate insights from anyone following the company more closely.