Valued at $2.7 billion, Argan Inc. (AGX) provides inside premise wiring services to the federal government – and underground and aerial construction services and splicing to major telecommunications and utilities customers. The stock currently has momentum and support from both the market and individual investors, writes Jim Van Meerten, analyst at Barchart.
I found AGX by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AGX checks those boxes.
AGX Price Vs. Daily Moving Averages
When a stock is trading above all its daily moving averages and closes within 1.1% of its 52-week high, it won’t take much to hit another new high. Other factors I like: AGX has a Weighted Alpha of +181.30, the stock has gained 203% over the past year, it’s trading above its 20-, 50- and 100-day moving averages, and its 14-day Relative Strength Index was just at 83.36%.
Meanwhile, Wall Street analysts tracked by Barchart have issued one “Strong Buy” and one “Hold” opinion on the stock. Value Line gives the stock an above-average rating. And CFRA’s MarketScope gives the stock a “Strong Buy.”
While AGX has momentum and investor support, it is volatile and speculative. Use strict risk management and stop loss strategies if considering a position.
