10 Best Small-Cap Stocks to Buy Now

8. Argan, Inc. (NYSE:AGX)

Analyst Upside: 17.11%

No. of Hedge Fund Holders: 33

Argan, Inc. (NYSE:AGX) is a holding company with diversified businesses including construction, power industry services, and telecommunications. The company operates in these various segments through its subsidiaries in each segment. After returning over 170% in 2024, AGX shares are down by almost 7% so far in 2025. Argan is primarily a construction company that does a lot of work in the power industry. The company made remarkable progress last year in the power segment.

Argan’s third quarter 2024 results were one of the best in its history. The company posted a revenue of $257 million in Q3, up by 47% from a year ago. The power services segment was the most dominant segment of the company, with a revenue surge of 75% year-over-year to $212 million, indicating strong performance in both renewable and natural gas projects.

Argan, Inc. (NYSE:AGX) has around $800 million in backlog and continues to increase its revenue. Argan’s subsidiary, Gemma Power Systems, has also obtained the green signal for a 700 MW combined-cycle natural gas-fired power plant in the U.S. The company has a solid balance sheet with approximately $506 million in cash and investments, net liquidity of $281 million, and zero debt. In addition to that, the board has increased AGX’s quarterly dividend by 25%, reflecting confidence in the business and future growth prospects. This shows why investors have been interested in AGX lately.