XLU - Argan: Quality Business Uncorrelated Returns And Belongs In An All-Weather Portfolio

2024-04-09 04:13:44 ET

Summary

• Argan operates as an EPC in the power generation sector, specializing in the design, construction, and commissioning of power facilities.
• AGX stock has low beta and low correlation to the market, making it less cyclical and potentially outperforming in the future.
• The future looks bright for Argan due to the forecasted growth in the utilities sector and the shift towards renewables in the power generation mix.
• The nature of its business and its historical performance make the case that it should be a part of an all-weather portfolio.

While picking stocks that react well along with the market is not too difficult, what is more difficult in my opinion is building a truly all-weather portfolio. In the hunt for such names, one may have to sacrifice returns in that part of the portfolio, and it can truly test the patience of any investor. Finding stocks that offer both stability and growth potential can be a daunting task indeed. But what if there was a stock that may not only be categorized as "all-weather" but also has such a bright future that it may provide explosive returns from here?...

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