This AI Builder Is At A Pivotal Chart Level With Earnings Due

Argan (AGX) shares were in a precarious spot on their chart in the hours leading up to the company’s earnings report.

The heavy construction company reports January-quarter results after the close today. Analysts polled by FactSet expect Argan earnings of $2 per share. That would be a year-over-year decline of 10% as the company’s huge growth since 2024 presents tougher comparisons.

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Sales are expected to climb 10% to $255.3 million. Revenue grew 61%, 57%, 41%, 23% and 5% followed by a 2% decline over the past six quarters.

The company’s growth spurt came largely from feverish construction of data centers for artificial intelligence workloads. Argan specializes in power generation plants, which face surging power demands from data centers. It also works on telecom and industrial construction projects.

AI-related stocks have struggled along with the rest of the stock market this year.

Argan was added to the S&P SmallCap 600 index on Monday. The company’s market capitalization has now grown to more than $5.68 billion.

Arlington, Va.-based Argan has a Composite Rating of 96 and an EPS Rating of 92. The stock is up more than 30% year to date, although this week’s 13% tumble has diminished its performance.

Argan stock fell 6% to around 411 Thursday afternoon, fighting to hold the 50-day moving average after skidding to 398.95 intraday, IBD MarketSurge shows. It’s been a tough week, with AGX down 12%.

Further declines below that level would be a bearish signal. But a rebound back above the line would be a positive sign and perhaps a chance to add shares.

Investors should be cautious, and not just because of high market risk. The stock had climbed as much as 23% from an alternative buy point at 400. But Argan round-tripped that entire move Friday morning. That’s a sell signal for investors who purchased shares around the 400 level.

Argan stock has an elevated 21-day average true range (ATR) of 6.22%. The average true range, available on IBD MarketSurge, gauges the characteristic breadth of a stock’s behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.

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