Parsons Corporation (PSN) Stock Analysis
Falling Knife setup
Technology · Information Technology Services
Sell if holding. Momentum 1.0/10 is below the 5.0 floor at $50.47 — 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 1.0/10 is below the 5.0 floor at $50.47 — 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 25, MACD bearish. Score 4.4/10, moderate confidence.
Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity no date, 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
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
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 Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.0/10 is below the 5.0 floor at $50.47 — 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 25, MACD bearish. Prior stop was $47.92. Score 4.4/10, moderate confidence.
Take-profit target: $64.90 (+28.6% 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: 4.4/10.
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.