PSNParsons Corporation demonstrates solid fundamental performance, particularly in revenue growth and profitability, supported by positive thematic trends in defense and critical infrastructure. Technical indicators suggest a cautious short-term outlook due to recent price action, but the long-term trend remains constructive. Overall, the company presents a compelling investment opportunity for growth-oriented portfolios.
Parsons is well-positioned to benefit from significant secular growth trends in defense, intelligence, and critical infrastructure modernization, with strong tailwinds from government spending and technological advancements.
Parsons exhibits strong revenue and earnings growth, improving profitability, and a manageable debt structure. While P/E ratios are somewhat high, the company's operational performance and market position are robust.
The stock is experiencing a short-term downtrend, with key moving averages indicating resistance. Momentum indicators are mixed, suggesting potential for a bounce but also caution against immediate strong upside.
| Factor | Score |
|---|---|
| Defense & Intelligence Spending | 90 |
| Infrastructure Modernization | 85 |
| Cybersecurity & Digital Transformation | 88 |
| Geopolitical Stability & Risk | 80 |
| Sustainability (ESG) | 75 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 75 |
| Growth | 85 |
| Balance Sheet Health | 70 |
| Cash Flow | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 50 |
| Momentum | 70 |
| Volume Confirmation | 75 |
| Support & Resistance | 60 |
Consistent EPS Beat
The company has exceeded earnings per share (EPS) estimates in the last three reported quarters (Q4 2024, Q3 2024, Q2 2024), indicating a trend of strong operational execution and effective cost management.
Attractive P/E Ratio vs. Industry
The trailing Price-to-Earnings (P/E) ratio of 32.15 is comparable to or lower than the average P/E for companies in the defense and critical infrastructure sector, suggesting potential value relative to peers.
High Price-to-Sales Ratio
The Price-to-Sales (PS) ratio of 1.6 is higher in 2024 (5.7 and 6.1 for Q4 and Q3 respectively) compared to previous years (around 1.5-1.9), suggesting that the market is valuing revenue more highly, potentially indicating stretched valuation in recent quarters.
Negative Q1 2025 EPS Estimate
The estimated EPS for Q1 2025 was negative (-75.2), and the actual reported EPS for Q1 2025 was also negative (-7.0), indicating a significant loss in that quarter which deviates from the recent trend of positive earnings surprises.
August 2025
6
Next Earnings Date
H: $0.79
A: $0.74
L: $0.70
H: 1.67B
A: 1.60B
L: 1.56B
Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment offers critical technologies, such as cyber; missile defense; intelligence; electronic warfare; space ground systems; space and weapon system resiliency; geospatial and signals intelligence; environmental remediation; border security and critical infrastructure protection; counter unmanned air systems; and biometrics and bio surveillance solutions to the U.S. government and its agencies. This segment also provides software and hardware; satellite ground systems support and operations, flight dynamics, data fusion and analytics, platform system integration, directed energy, and command and control systems; digital landscape and mission support; and weapons of mass destruction elimination and munition destruction, architectural design, program and construction management, infectious disease control, and advanced electronic security systems, as well as remediation of unexploded ordinances and hazardous, toxic, and reactive wastes. Its Critical Infrastructure segment develops solutions for aviation, rail and transit, bridges, roads, and highways. This segment also provides technical solutions, project conceptualization, urban planning, landscape architecture, sewage treatment and drainage, and events management; AI/ML, cloud, digital twins, systems integration, transportation network software, vehicle inspection data analytics software, automated people mover, electric vehicle infrastructure, and autonomous vehicle integration services; and planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, and water and wastewater. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.
83.10 USD
The 39 analysts offering 1 year price forecasts for PSN have a max estimate of 95.00 and a min estimate of 65.00.