AGX - Argan Has Terrific Fundamentals And Significant Upside
Investment Thesis
Even though Argan (AGX) has a record backlog, the current valuation does not appropriately reflect the future earning power of this company. Furthermore, the industry is becoming less competitive and I believe Argan has structural competitive advantages that are often overlooked by investors. My valuation model puts Argan's stock price at $74 in 1-2 years.
Argan builds natural gas power plants. Construction companies are benefiting from a secular shift in the electricity generation mix from coal and nuclear to natural gas and renewables. This replacement cycle will drive the majority of