Back to top

Aggressive Growth

Zacks Equity Research

Argan, Inc.

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Shares of Argan, Inc. are up 57.4% year-to-date thanks to solid financial results in the first two fiscal quarters. The fiscal second quarter report from mid-September included a sharp year-over-year gain in EPS, sending shares to a new 52-week high. In addition, this Zacks #1 Rank (Strong Buy) provider of heavy construction services offers consistent special dividend payouts.

Driving Catalysts

Fiscal 2013 has so far been a strong year for the company. In its fiscal second-quarter announcement from September 12, earnings per share of 45 cents soared past last year’s 15 cents. Revenue jumped 214% year over year to $82.6 million. The company’s prime subsidiary, Gemma Power Systems, contributed 95% of total revenue, roughly 2% more than the year-ago contribution.

The company has been regularly paying special cash dividends over time with increases at regular intervals. Most recently on September 20, the company’s Board of Directors declared 60 cents of special cash dividends to be paid to shareholders on October 11, 2012.

Rising Earnings Estimate

Over the last 60 days, the Zacks Consensus Estimate for fiscal 2013 has increased by 0.6% to $1.63, while the Zacks Consensus Estimate for fiscal 2014 is up 11.0% to $1.92 per share. These earnings estimates represent year-over-year growth of 191.1% for fiscal 2013 and 17.8% for fiscal 2014.

Valuation

Argan, Inc. is currently trading at a price-to-earnings (P/E) ratio of 11.0, compared with the peer group average of 15.3. On a P/S basis, shares trade at 1.0x, versus the peer group average of 1.0x. The company offers a ROE of 15.8% while the peer group average is at 15.3%.

In the last two years, Argan, Inc. performed really well, rising remarkably from an under $10.00 share price to approximately $18.00 per share. Growth prospects appear bright for the stock as can be deduced from the rising Zacks Consensus Estimates.

Argan, Inc. is based in Rockville, Maryland, and was incorporated in 1961. It operates in the Industrial Goods sector; focusing primarily on providing heavy construction services to public utilities, independent power project owners, municipalities, public institutions, and private industry. It currently has a market capitalization of approximately $247 million.


Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>


Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%