Parsons (PSN) Valuation Check After 26% One-Month Share Price Slide

Recent Performance Puts Parsons Under the Microscope

Parsons (PSN) has slid about 26% over the past month and roughly the same in the past 3 months, pulling its year to date loss to around 33%, which naturally raises valuation questions.

See our latest analysis for Parsons.

The 1 month share price return of negative 26.2% and 1 year total shareholder return of negative 36.6% show momentum has clearly faded, as investors reassess Parsons’ growth prospects and risk profile, despite its longer term total shareholder returns still being positive over 3 and 5 years.

If this recent weakness has you reassessing your exposure to defense and infrastructure names, it could be a useful moment to explore aerospace and defense stocks as potential alternatives or complements.

With earnings still growing and the share price now trading at a sizable discount to analyst targets, investors face a key question: is this a mispriced downturn, or is the market sensibly discounting Parsons’ future growth?

Most Popular Narrative: 34.2% Undervalued

Compared with Parsons’ last close of $60.20, the most widely followed narrative pegs fair value far higher, implying a substantial upside gap yet to close.

Robust funding environment, demonstrated by a record funded backlog (up 14% YoY), strong free cash flow performance, and high win rates on large contracts, combine with secular infrastructure and security demand to underpin both near

and long-term earnings growth and margin stability, despite investor caution or perceived near-term volatility.

Read the complete narrative.

Want to see how steady margin expansion, measured revenue growth, and a premium future earnings multiple all converge into one bold fair value call? Read on.

Result: Fair Value of $91.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that bullish setup could unravel if U.S. federal budgets tighten or Parsons stumbles on integrating recent acquisitions, which could pressure margins and contract momentum.

Find out about the key risks to this Parsons narrative.

Build Your Own Parsons Narrative

If you see the story differently or want to stress test the assumptions with your own research, you can build a custom view in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Parsons.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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