Argan saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 94 to 96.
The revised score means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Argan is currently forming a consolidation, with a 48.51 entry on a MarketSmith weekly chart. Look for the stock to break out in volume at least 40% above average. Understand that it's a thinly traded stock, with average daily dollar volume under $8 million. Less liquid stocks are more prone to volatile action since it takes fewer shares bought or sold to move the share price.
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The stock has an 86 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 86% of all stocks.
Its Accumulation/Distribution Rating of A shows heavy buying by institutional investors over the last 13 weeks. The Mutual Fund ownership has not changed much in recent quarters, however.
AGX Stock Earnings
In Q3, the company reported -29% earnings growth. Top line growth increased 39%, up from 20% in the prior quarter. The company has now posted increasing growth in each of the last three quarters.
Argan holds the No. 1 rank among its peers in the Building-Heavy Construction industry group. Quanta Services and Sterling Infrastructure are also among the group's highest-rated stocks.
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