Why NYSE:PSN Is a Standout High-Growth Stock in a Consolidation Phase.

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.

A Closer Look at Growth for NYSE:PSN

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:PSN has earned a 8 for growth:

• PSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.71%, which is quite impressive.
• Looking at the last year, PSN shows a very strong growth in Revenue. The Revenue has grown by 28.88%.
• Measured over the past years, PSN shows a quite strong growth in Revenue. The Revenue has been growing by 9.20% on average per year.
• Based on estimates for the next years, PSN will show a very strong growth in Earnings Per Share. The EPS will grow by 22.79% on average per year.
• PSN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.63% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for NYSE:PSN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:PSN was assigned a score of 6 for health:

• PSN has an Altman-Z score of 3.68. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.68, PSN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• PSN has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as PSN would need 2.30 years to pay back of all of its debts.
• PSN has a better Debt to FCF ratio (2.30) than 69.23% of its industry peers.
• Although PSN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

How do we evaluate the Profitability for NYSE:PSN?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:PSN, the assigned 6 is a significant indicator of profitability:

• PSN has a better Return On Invested Capital (9.43%) than 60.26% of its industry peers.
• The 3 year average ROIC (4.85%) for PSN is below the current ROIC(9.43%), indicating increased profibility in the last year.
• Looking at the Operating Margin, with a value of 7.31%, PSN is in the better half of the industry, outperforming 60.26% of the companies in the same industry.
• PSN's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of PSN has grown nicely.

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 7:

Although the technical rating is only medium, PSN does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 95.18, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

For an up to date full technical analysis you can check the technical report of PSN

Keep in mind

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.