Parsons Corporation (PSN) - Stock Analysis

Last updated: Jul 19, 2026

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Positive catalyst setup into 2026-07-29 earnings, with shares rebounding about 19% over 21 trading days and steady contract wins/project expansions across defense, transportation, and infrastructure, plus unusual options activity and heavy-volume interest.

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Idea window: 7/23/2026 – 7/30/2026Sector: Industrials

AI Analyst Overview

Last Price
$57.77
Market Cap
$5.21B
1D Return
+0.33%
YTD Return
-6.52%

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Valuation Metrics

P/E
22.9
P/B
2.0
P/S
0.8
EV/EBITDA
12.9
Div Yield
—

Fundamental Analysis

6.4

Key Financial Insights: • Stable margins • Weak quarter cash • Rising leverage PSN remains profitable with solid annual cash flow and decent returns on capital, but recent negative quarterly cash generation, rising leverage, and a demanding valuation make the near-term risk/reward less attractive.

profitable
risk

Price Behavior

6.2

Key Price Behavior Insights: • Higher-high trend • Support holding • Breakout needed Support Level: $54.00-$55.00 Resistance Level: $57.88 Over the last month, PSN has shifted into a constructive uptrend with higher highs/lows, support around $54-$55, and key resistance at $57.88 that needs a clean breakout to confirm durability.

Bullish
Consolidation

Sentiment & News

6.8

Key News Insights: • Contract wins • Trading momentum • Valuation focus Parsons is drawing investor attention with rising trading activity and valuation debate while winning new defense, space, infrastructure, and environmental contracts that support its long-term growth story.

PSN
DefenseTech
AI

AI Summary

6.4
Positive

PSN should be viewed less as a near-term revenue-growth play and more as a backlog-conversion test: its record backlog and 1.4x book-to-bill support the opportunity, but the stock likely stays range-bound until management proves that work booked turns into sustained revenue and positive free cash flow without adding balance-sheet stress.

BacklogConversion
CashFlow
Execution
AI summary updated 4 days ago

Description

Parsons Corporation is an engineering and technical services firm serving defense, intelligence, and critical infrastructure clients in North America, the Middle East, and internationally. Organized into Federal Solutions and Critical Infrastructure segments, the company delivers cybersecurity and intelligence services, space and geospatial systems, missile defense and C5ISR capabilities, and broader technology and program management for energy, environmental, and public-works projects. Its customers include the U.S. Department of Defense, U.S. intelligence agencies, transportation authorities, utilities, and industrial clients.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Jul 23Jul 30PSNParsons Corporation
Positive catalyst setup into 2026-07-29 earnings, with shares rebounding about 19% over 21 trading days and steady contract wins/project expansions across defense, transportation, and infrastructure, plus unusual options activity and heavy-volume interest.
Active+0.0%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.