NYSE:PSN—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Sep 12, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether PARSONS CORP (NYSE:PSN) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but PARSONS CORP has surfaced on our radar for growth with base formation, warranting further examination.

Evaluating Growth: NYSE:PSN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:PSN boasts a 8 out of 10:

PSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.44%, which is quite impressive.
The Revenue has grown by 28.35% in the past year. This is a very strong growth!
PSN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.20% yearly.
PSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.81% yearly.
The Revenue is expected to grow by 12.80% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

A Closer Look at Health for NYSE:PSN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:PSN, the assigned 6 for health provides valuable insights:

PSN has an Altman-Z score of 3.75. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
PSN's Altman-Z score of 3.75 is fine compared to the rest of the industry. PSN outperforms 71.25% of its industry peers.
The Debt to FCF ratio of PSN is 2.79, which is a good value as it means it would take PSN, 2.79 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.79, PSN is doing good in the industry, outperforming 67.50% of the companies in the same industry.
The Current ratio of PSN (1.80) is better than 68.75% of its industry peers.
Looking at the Quick ratio, with a value of 1.80, PSN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:PSN, the assigned 5 is noteworthy for profitability:

The Return On Invested Capital of PSN (8.83%) is better than 62.50% of its industry peers.
The 3 year average ROIC (4.85%) for PSN is below the current ROIC(8.83%), indicating increased profibility in the last year.
PSN's Operating Margin has improved in the last couple of years.
PSN's Gross Margin has improved in the last couple of years.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:PSN is 8:

Besides having an excellent technical rating, PSN also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 94.27, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of PSN contains the most current fundamental analsysis.

Check the latest full technical report of PSN for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.