Why Argan Small-Cap Shares Soar 34% Today to 52-Week High

Argan (AGX 26.33%) The stock absolutely crushed the markets on Friday, rising 34.4% in early morning trading and hitting a 52-week high. As of 11:15 a.m. ET Friday, the little-known small-cap stock with a market cap of about $1.2 billion was still up 26%.

Argan, which primarily builds power plants such as natural gas and renewable energy plants, fueled investor interest in its stock today after reporting torrid second-quarter revenue and earnings growth. Here’s everything you need to know.

Argan’s impressive earnings ratio

Here are some key numbers from Argan’s Q2 revenue report worth noting (all changes are year-over-year):

• Revenue: Up 61% to $227 million.
• Gross margin: 13.7% versus 16.8% in the year-ago quarter.
• Net income: Up 43% to $18 million.

Management attributed the strong top-line growth to sustained demand for renewables, which drove sales for its energy building business, Gemma Power Systems. The successful delivery of projects has also boosted revenue for its industrial construction subsidiary, The Roberts Company.

The argan stock looks intriguing

A deeper look at Argan’s earnings report reveals what a big role renewable energy could play in the company’s growth.

To put some numbers on it, Argan ended the second quarter with $1 billion in stock, which includes $70 million for renewable energy projects. Management believes that data centers, electric vehicles and onshoring of manufacturing operations could be the biggest drivers of energy demand in the coming years and would open up new business opportunities for Argan.

Argan also ended the second quarter with more cash, around $485 million, up from $412 million on January 31, 2024. With the company also paying a dividend, Argan stock could remain on the radar investors.