NYSE:PSN qualifies as a high growth stock and is consolidating.

In this article, we'll take a closer look at PARSONS CORP (NYSE:PSN) as a potential candidate for growth investing. While it's important for investors to conduct their own research, PARSONS CORP has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Evaluating Growth: NYSE:PSN

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:PSN, the assigned 8 reflects its growth potential:

• 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.
• PSN shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.88%.
• The Revenue has been growing by 9.20% on average over the past years. This is quite good.
• Based on estimates for the next years, PSN will show a very strong growth in Earnings Per Share. The EPS will grow by 23.06% on average per year.
• Based on estimates for the next years, PSN will show a quite strong growth in Revenue. The Revenue will grow by 14.79% on average per year.
• 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.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NYSE:PSN's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PSN has received a 6 out of 10:

• An Altman-Z score of 3.62 indicates that PSN is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.62, PSN is doing good in the industry, outperforming 63.64% 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's Debt to FCF ratio of 2.30 is fine compared to the rest of the industry. PSN outperforms 68.83% 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.

What does the Profitability looks like for NYSE:PSN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:PSN has earned a 5 out of 10:

• Looking at the Return On Invested Capital, with a value of 9.43%, PSN is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
• The 3 year average ROIC (4.85%) for PSN is below the current ROIC(9.43%), indicating increased profibility in the last year.
• 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.

Why is NYSE:PSN a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:PSN exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

PSN has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 96.51. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for PSN in the last couple of days, which is a good sign.

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

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.