Argan experienced a remarkable price increase of 15% over the last week. This movement aligns with its notable earnings announcement on March 27, 2025. The company reported a substantial rise in sales and net income from the previous year, showcasing strong financial growth. These positive financial indicators likely fueled investor optimism, driving the stock's price higher despite a broader market downturn triggered by new tariffs announced by President Trump. While major indices like the Dow Jones witnessed significant declines, Argan's strong earnings performance seemed to counteract these market pressures, propelling its stock upward in this challenging economic climate.

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Over the past five years, Argan, Inc.'s total shareholder return, including share price and dividends, has grown by 340.81%. This impressive performance can be attributed to a series of successful expansions and strategic moves. Primarily, the increase in project backlog by 80%—now worth US$1.4 billion—has been a critical factor. Key projects, such as the 1.2 gigawatt gas facility in Texas and the 405 megawatts solar initiative in Illinois, underpin this expansion and showcase Argan's adaptation to growing energy demands.

Furthermore, the company's financial stability, highlighted by US$525 million in cash and zero debt, has supported continuous dividend increases and a significant buyback program, repurchasing 18.42% of its common shares. Argan's recent fiscal performance, including robust earnings growth exceeding 160% over the past year, and surpassing the broader market and industry returns, has solidified investor confidence. These elements collectively explain the substantial long-term returns shareholders have experienced.

The analysis detailed in our Argan valuation report hints at an deflated share price compared to its estimated value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:AGX.

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