Energy Sector Momentum and the Case for Renewable Energy Exposure in 2025

The energy sector is undergoing a seismic shift in 2025, driven by surging demand for electricity, evolving policy landscapes, and the accelerating transition to renewable energy. Navellier & Associates, a firm known for its contrarian insights, has positioned itself at the forefront of this transformation by significantly increasing its exposure to energy infrastructure and renewable power. Central to this strategy is its growing stake in Argan (AGX), a company poised to benefit from the global push for energy security and decarbonization.

Navellier's Strategic Bet on Energy Infrastructure

Navellier's Q3 2025 filings reveal a sharp focus on energy infrastructure, with its holdings in Argan expanding by 12,040 shares-a 46% increase-to a total of 38,442 shares, valued at $10.38 million. This move aligns with the firm's broader thesis that energy security and infrastructure development will remain critical drivers of economic growth. Navellier has also bolstered its positions in Exxon Mobil (XOM) and Bloom Energy (BE), signaling a diversified approach to energy exposure that balances traditional and emerging technologies according to filings.

The firm's rationale is rooted in macroeconomic trends. Navellier anticipates robust U.S. GDP growth and a global decline in interest rates, which could spur investment in capital-intensive energy projects. This outlook is particularly relevant for companies like Argan, which specializes in engineering, procurement, and construction (EPC) services for power generation facilities.

Argan's Role in the Energy Transition

Argan's business model is uniquely positioned to capitalize on the dual forces of rising electricity demand and the need for reliable infrastructure. The company's wholly owned subsidiary, Gemma Power Systems, has secured a pivotal contract to develop the CPV Basin Ranch Energy Center, a 1,350 MW combined-cycle power plant in Texas. This project, which includes optional carbon capture capabilities, is expected to create thousands of jobs and support Texas's energy grid as demand surges from data centers and industrial activity according to company filings.

Internationally, Argan's subsidiary Atlantic Projects Company is executing the Platin Power Station in Ireland, a 170 MW facility featuring Siemens Energy turbines. This project underscores Argan's ability to deliver flexible power solutions in markets prioritizing net-zero goals according to business announcements. Such projects highlight the company's expertise in navigating complex regulatory and technical landscapes-a critical asset in an era of fragmented energy policies.

Global Trends and the Renewable Energy Paradox

While Navellier's energy strategy appears forward-looking, the broader renewable energy sector in 2025 is marked by contradictions. Global investment in renewables hit a record $386 billion in the first half of 2025, a 10% year-over-year increase, driven largely by the EU-27, where investments rose by 63% according to BNEF analysis. However, the U.S. has seen a 36% decline in renewable investments due to policy shifts under the Trump administration, including restrictions on foreign entities of concern (FEOC) and the suspension of key projects like Orsted's Revolution Wind farm according to Deloitte research.

Despite these headwinds, Navellier's focus on infrastructure-oriented firms like Argan reflects a belief in the sector's long-term resilience. The firm's research suggests that AI-driven demand for electricity-particularly from data centers-will outpace policy-induced volatility, creating sustained opportunities for EPC providers according to Navellier filings. Argan's projects, which blend natural gas-fired power with renewable energy solutions, offer a pragmatic bridge between current energy needs and decarbonization goals.

Strategic Rationale and Investor Implications

Navellier's energy strategy is underpinned by a nuanced understanding of sector dynamics. While the U.S. market faces short-term challenges, the firm's global perspective highlights growth in regions like Europe and Asia, where renewable energy capacity is expected to expand significantly between 2025 and 2030 according to IEA projections. Argan's international footprint and project pipeline position it to benefit from this divergence.

For investors, the case for renewable energy exposure in 2025 hinges on two factors: infrastructure resilience and policy adaptability. Argan's ability to secure large-scale contracts in both developed and emerging markets demonstrates its capacity to navigate regulatory uncertainty. Meanwhile, Navellier's emphasis on energy security aligns with a broader trend of governments prioritizing domestic energy production, a shift that could accelerate in response to geopolitical tensions.

Conclusion

Navellier's strategic shift toward energy exposure-anchored by its growing stake in Argan-reflects a calculated bet on the sector's structural transformation. While the U.S. renewable energy landscape remains contentious, the firm's global outlook and focus on infrastructure-oriented growth suggest a long-term horizon. For investors seeking to capitalize on the energy transition, Argan's role in delivering scalable, reliable power solutions offers a compelling case for inclusion in a diversified portfolio.