Parsons Corporation (PSN) Stock Analysis
Falling Knife setup
Technology · Information Technology Services
Sell if holding. Momentum 2.8/10 is below the 5.0 floor at $51.08 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. federal government; Concentration risk — Customer: single federal customer set exceeding 20% of revenue.
Parsons provides advanced technology and engineering solutions in two segments: Federal Solutions (cyber, space/missile defense, intelligence, aviation, electronic warfare) and Critical Infrastructure (transportation, water, urban development, EMEA), generating $6.4B revenues in... Read more
Sell if holding. Momentum 2.8/10 is below the 5.0 floor at $51.08 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. federal government; Concentration risk — Customer: single federal customer set exceeding 20% of revenue. Chart setup: Death cross, below all MAs, RSI 28, MACD bearish. Score 4.5/10, moderate confidence.
Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity 96d clear, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. federal government10-K Item 1A: 'The U.S. federal government and its agencies, including the military and intelligence community, collectively are our largest customer...it represents substantially all of the revenue of our Federal Solutions segment'
- HIGHCustomersingle federal customer set exceeding 20% of revenue10-K Item 1A: 'One customer set within the federal government exceeded 20% of Parsons' revenue during 2025'
Material Events(8-K, last 90d)
- 2026-03-17Item 5.02LOWCHRO Susan Balaguer announced retirement effective April 1, 2026; Soo Lagasse appointed as CHRO effective April 1, 2026. No disagreement cited. Board approved $250,000 cash bonus for Balaguer.SEC filing →
- 2026-02-26Item 5.02LOWBoard approved $10M stock award to CEO Carey A. Smith (60% PSUs / 40% RSUs) for retention. RSUs vest ratably over 4 years; PSUs cliff vest end of 2029 based on rTSR vs. custom peer group.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Revenue shrinking — -7.5% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.8/10 is below the 5.0 floor at $51.08 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. federal government; Concentration risk — Customer: single federal customer set exceeding 20% of revenue. Chart setup: Death cross, below all MAs, RSI 28, MACD bearish. Prior stop was $47.92. Score 4.5/10, moderate confidence.
Take-profit target: $64.90 (+27.1% upside). Prior stop was $47.92. Stop-loss: $47.92.
Concentration risk — Customer: U.S. federal government; Concentration risk — Customer: single federal customer set exceeding 20% of revenue; Weak overall score: 4.5/10.
Parsons Corporation trades at a P/E of 24.1 (forward 13.7). TrendMatrix value score: 6.9/10. Verdict: Sell.
18 analysts cover PSN with a consensus score of 4.1/5. Average price target: $75.
What does Parsons Corporation do?Parsons provides advanced technology and engineering solutions in two segments: Federal Solutions (cyber, space/missile...
Parsons provides advanced technology and engineering solutions in two segments: Federal Solutions (cyber, space/missile defense, intelligence, aviation, electronic warfare) and Critical Infrastructure (transportation, water, urban development, EMEA), generating $6.4B revenues in fiscal 2025. The U.S. federal government represents substantially all of the Federal Solutions segment's revenue; one confidential customer set exceeded 20% of total company revenue in 2025. The company had $8.7B in total backlog and a 99.6% re-compete win rate.