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Valued at around $2.8 billion, Argan Inc. (AGX) provides inside premise wiring services to the federal government – and underground and aerial construction services and splicing to major telecommunications and utilities customers. The stock seems to have momentum and support from both the market as well as individual investors, writes Jim Van Meerten, analyst at Barchart.

I found Argan by using Barchart’s screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used the Flipcharts feature to review the charts for consistent price appreciation. Argan checks those boxes.

Argan Price vs. Daily Moving Averages

When a stock is trading above all its daily moving averages and closes within 1.1% of its 52-week high, it won’t take much to hit another new high. Other factors I like: Argan has a Weighted Alpha of +181.30, the stock has gained 203% over the past year, it's recently been trading above its 20-, 50-, and 100-day moving averages, and its 14-day Relative Strength Index was just at 83.36%.

Meanwhile, Wall Street analysts have issued one “Strong Buy” and one “Hold” opinion on the stock. Value Line gives the stock an above-average rating, and CFRA’s MarketScope gives the stock a “Strong Buy.”

While Argan has momentum and investor support, it is still volatile and speculative. Use strict risk management and stop loss strategies if you are considering a position.

About the Author

Jim Van Meerten earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended post-baccalaureate and graduate courses in Business Administration, Quantitative Math, and Education at Florida Atlantic University, Georgia State University and University of North Carolina at Charlotte.

Previously he has been an accountant, attorney, adjunct professor in Business Law, Accounting and Internal Auditing, financial advisor, supervisory principal, and compliance officer. He also passed the Georgia CPA Exam, the Certified Internal Auditor Exam, and the FINRA Series 7, 24 and 9/10 exams.

He is presently an analyst at Barchart and writes "Chart of the Day," an article sent out daily that utilizes the tools available on Barchart.com, including screeners, Barchart technical indicators, and trading signals, to find stocks with compelling setups.

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