A Closer Look at 5 Analyst Recommendations For Parsons

In the last three months, 5 analysts have published ratings on Parsons PSN, offering a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Parsons, presenting an average target of $105.0, a high estimate of $116.00, and a low estimate of $97.00. Marking an increase of 17.71%, the current average surpasses the previous average price target of $89.20.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Parsons is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Parsons. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Parsons compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Parsons's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Parsons analyst ratings.

Unveiling the Story Behind Parsons

Parsons Corp is a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets. The business activities of the group are carried out through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment is a high-end service and technology provider to the U.S. government, delivering timely, cost-effective solutions for mission-critical projects, whereas the Critical Infrastructure segment provides integrated design and engineering services for complex physical and digital infrastructure around the globe.

A Deep Dive into Parsons's Financials

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining Parsons's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 23.15% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Parsons's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.14%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Parsons's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.17%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Parsons's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.34%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Parsons's debt-to-equity ratio is below the industry average. With a ratio of 0.63, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.