Parsons Bringing in Big Money

The company develops technologies for global defense, intelligence, and critical infrastructure customers. It’s grown recently through a combination of acquisitions and partnerships, furthering its ability to serve government entities and projects.

In its second-quarter earnings report, PSN showed revenue grew by 23% on a year-over-year basis, marking the fifth consecutive quarter of over 20% revenue growth. The company also increased its 2024 financial guidance, pointing to a $57 billion business pipeline, with $13 billion in contracts not yet included in its figures.

It’s no wonder PSN shares are up 42% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Has Parsons in its Aim

Institutional volumes reveal plenty. In the last year, PSN has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PSN shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Parsons.

Parsons Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PSN has strong sales and earnings growth:

• 3-year sales growth rate (+12.6%)
• 3-year sales earnings rate (+25.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.7%.

Now it makes sense why the stock has been powering to new heights. PSN has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Parsons has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when PSN was a top pick…rising higher with time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Parsons Price Prediction

The PSN rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in PSN at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.