PSN Stock Analysis — Parsons Corporation
Sector: Industrials
AI Verdict
PSN is cheap for the growth you're getting at 15.1x forward earnings and 47.7% EPS growth, but the moat relies on continued government wins, so any stumble could erase the discount.
Competitive Moat
Parsons specializes in mission-critical infrastructure and defense solutions, often securing long-term government contracts that create high switching costs and recurring revenue. Their expertise in integrating advanced engineering with cybersecurity for sensitive projects makes them a preferred partner for federal clients.
Summary
A sharp drop in forward P/E to 15.1x with nearly 48% expected earnings growth puts PSN in the spotlight for value-focused investors.
Where It Stands
PSN trades at 15.1x next year's earnings—well below the 20x industrials median—while analysts expect 47.7% EPS growth, and its trailing P/E of 22.4x is also below sector norms.
Key Metrics
- Trailing P/E: 22.4x
- Forward P/E: 15.1x
- PEG Ratio: 0.47
- Earnings Growth: +0.5%
- Revenue Growth: -0.1%
- 52-Week High: $89.50
- 52-Week Low: $48.23
Analyst Consensus
12 Buy · 6 Hold · 0 Sell (18 analysts)
Bull Case
With forward EPS growth forecast at 47.7% and a forward P/E of 15.1x, investors are paying a low price for substantial expected earnings acceleration.
Bear Case
If the forward P/E reverts even halfway to the sector median (from 15.1x to 17.5x), the stock could see a 15% rerating downward if growth disappoints.
Catalyst to Watch
Watch for upcoming government contract wins or renewals—missing out on a major deal could quickly undermine the bullish growth forecast.