Assessing Argan (AGX) Valuation After Analyst Downgrades and Rising Interest Ahead of Q3 2026 Earnings

Argan (AGX) is back in the spotlight as investors brace for its Q3 2026 earnings release and call on December 4, with sentiment influenced by fresh analyst downgrades and mixed stock reactions.

See our latest analysis for Argan.

Short term, the stock has cooled off with a 1 week share price return of minus 7.76 percent after recent downgrades. That comes after a powerful 90 day share price return of 47.62 percent and a remarkable 3 year total shareholder return of 894.02 percent, suggesting longer term momentum is still very much intact.

If Argan’s surge has you rethinking where growth might come from next, this could be a good moment to discover fast growing stocks with high insider ownership.

With shares now trading above the average analyst target and growth expectations running high, the key question is whether Argan is still trading below its true value or if the market has already priced in its next leg of growth.

Most Popular Narrative Narrative: 18.7% Overvalued

With Argan’s last close at $351.09 versus a narrative fair value of $295.75, expectations are running ahead of the most widely followed storyline.

Record backlog and continued project wins across gas, renewables, water treatment, and recycling plants provide multi-year revenue visibility, indicating potential for increased operating leverage and higher gross margins as larger projects are executed successfully.

Read the complete narrative.

Want to see what kind of revenue climb, margin reset, and rich future earnings multiple are baked into that fair value line? The narrative’s projections might surprise you.

Result: Fair Value of $295.75 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on large gas projects and inherently lumpy margins means that execution missteps or a faster shift to renewables could quickly challenge this upbeat narrative.

Find out about the key risks to this Argan narrative.

Build Your Own Argan Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your Argan research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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