Why Argan Stock Soared This Week
Key Points
AI is driving the need for large-scale energy projects.
Argan stock has quietly gained 177% in the last year, and 940% over the past three years.
- 10 stocks we like better than Argan ›
A shift in investor thinking has been hitting the "Magnificent Seven" big tech stocks recently, as investors wonder whether they are overspending on artificial intelligence (AI) infrastructure buildouts. Some of that money is flowing into names that will benefit from all the heavy tech company spending. That includes power providers, data center owners, and HVAC service providers, including installation and maintenance.
Argan (NYSE: AGX) is one of those names benefiting from the rapid growth in AI. Shares of the industrial company soared 16.4% this week, according to data provided by S&P Global Market Intelligence.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Another data center play
Argan offers engineering, construction, and associated commissioning, maintenance, and consulting services to the power and industrial construction industries. The demand for its services has surged as data centers are being rapidly built, driving increased power requirements.
While revenue for the first nine months of 2025 rose 6.4% year over year to about $682 million, the company reported a record backlog of $3 billion. Some investors have been tracking its growing business, and the stock has soared 177% in the last year.
For investors who think it may be too late to harvest more gains, they may be right, at least for another year or so. Argan's forward price-to-earnings (P/E) ratio is now about 43, double its three-year average. Investors should keep it on their radar, however, as companies assess how much return they can get from the massive data center growth. If returns on those investments are substantial, tech companies will need plenty more help with what Argan provides.
Should you buy stock in Argan right now?
Before you buy stock in Argan, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Argan wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,554!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,120,663!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 14, 2026.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
