We recently published a list of 10 Stocks That Analysts Think Will Go Up. In this article, we are going to take a look at where Parsons Corporation (NYSE:PSN) stands against the other stocks analysts think will go up.
The S&P 500 index touched an all-time high this week as Mark Zuckerberg’s company’s 20-day streak finally came to an end, adding $320 billion to the company’s market cap. The semiconductor stocks once again drove the broader market. However, as the rally cools down, the focus is shifting back to Donald Trump’s tariffs. Automobiles, pharmaceuticals, and semiconductor companies are expected to be hit in the next wave of tariffs which has forced investors to rethink their strategies.
As investors and analysts try to figure out where the market is headed, some companies are more likely to go up in share price than others. We looked through the recent analyst upgrades and shortlisted 10 companies that are likely to go up according to analysts. We also looked at the factors driving this analyst optimism.
To come up with the list of 10 stocks that analysts think will go up, we only considered stocks with a market cap of at least $1 billion that were upgraded this week.
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Parsons Corporation (NYSE:PSN)
Parsons Corporation (NYSE:PSN) is an integrated services and solutions provider to the intelligence, defense, and critical infrastructure markets. It operates in two segments; Critical Infrastructure and Federal Solutions. The stock has lost a quarter of its value in the last month alone after analysts feared the company may lose some of its lucrative federal contracts after the inauguration of Donald Trump. Parsons Corporation (NYSE:PSN) was subsequently downgraded from Outperform to Market Perform by William Blair.
Less than a month on, the same firm has now changed its opinion of the company. The reason is quite simple: the stock has already fallen enough to factor in the loss in revenue from the executive orders that were feared to hit the company’s topline. With that risk already factored in, the stock’s fundamentals should help it reverse the price trend, which currently hovers near its 52-week lows.
The company recently acquired the TRS Group for a $36 million all-cash deal. This acquisition of a firm specializing in environmental remediation capabilities should boost the company’s Federal Solutions and Critical Infrastructure segments.
Overall, PSN ranks 8th on our list of the stocks analysts think will go up. While we acknowledge the potential of PSN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as PSN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
