Parsons Corp (PSN) Stock Analysis
Verdict: WATCH (do not buy)
A massive earnings-driven reassessment is stripping away PSN's premium valuation; the model sees a dead-money phase until margins stabilize.
Investment score: 48/100
Analysis as of
Is Parsons Corp stock worth reviewing? AI model thesis
Parsons is undergoing a painful valuation reset following a major Q2 2026 earnings miss and downward guidance revision. Despite attractive insider buying and solid FCF, the stock remains expensive relative to peers SAIC and KBR while exhibiting deteriorating operating health.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 85/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Parsons Corp opportunities and risks
What speaks for PSN
- Strong Free Cash Flow Yield
What speaks against PSN
- Severe Technical Damage and Momentum Loss
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| PSN | 27.4x | 0.7x | 14.4x | 21.5% | 2.5% | 7.1% |
| ANDG | 37.5x | 6.0x | n/a | 25.7% | -6.0% | 3.0% |
| FCN | 20.0x | 1.3x | 13.3x | 31.8% | 6.9% | 6.2% |
| SAIC | 13.1x | 0.7x | 10.2x | 12.5% | 5.6% | 12.2% |
| KBR | 11.5x | 0.6x | 8.2x | 14.5% | 5.2% | 10.7% |
| AMTM | 36.3x | 0.4x | 9.2x | 7.9% | 1.0% | 8.5% |
| Peer median | 20.0x | 0.7x | 9.2x | 14.5% | 5.2% | 8.5% |
Frequently asked questions about Parsons Corp (PSN)
Is PSN stock a good investment?
The cached TradeMates AI model rates Parsons Corp as WATCH (do not buy) with an investment score of 48/100. Parsons is undergoing a painful valuation reset following a major Q2 2026 earnings miss and downward guidance revision. Despite attractive insider buying and solid FCF, the stock remains expensive relative to peers SAIC and KBR while exhibiting deteriorating operating health. This is algorithmic model output, not personal investment advice.
Is PSN stock a buy?
The TradeMates model verdict for PSN is WATCH (do not buy) with an investment score of 48/100. Treat this as a model signal to review, not a personal buy recommendation.