Why Parsons Corporation (PSN) Plummeted on Wednesday

We recently compiled a list of the 10 Stocks Plummet on Wednesday. In this article, we are going to take a look at where Parsons Corporation (NYSE:PSN) stands against the other stocks.

The stock market ended firmer on Wednesday, with all major indices finishing in the green territory as investors weighed news of President Donald Trump’s imposition of a new round of tariffs while digesting minutes of the Federal Reserve.

The Dow Jones rose by 0.16 percent, the S&P 500 increased by 0.24 percent, while the tech-heavy Nasdaq eked out a 0.07 percent gain.

Ten companies bucked a broader market optimism, posting heavy losses, mostly due to disappointing earnings performance last year.

To come up with Wednesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A satellite navigating the skies, representing the power of the companies Geospatial Solutions.

Parsons Corporation (NYSE:PSN)

Parsons Corporation (NYSE:PSN) retreated on Wednesday, losing 11.46 percent to finish at $65.08 apiece as investors sold off positions after disappointing earnings results.

In its earnings release, Parsons announced earnings per share of $0.78, lower by 14 percent than the $0.91 as expected by analysts.

PSN, however, posted robust earnings, with net income attributable to the company growing 20.7 percent to $54.18 million from $44.9 million recorded in the same period last year, with revenues increasing 16 percent to $1.7 billion from $1.49 billion year-on-year.

Revenues for the full year improved by 24 percent to $6.75 billion from $5.44 billion in 2023.

For this year, PSN expects revenues to settle between $7 billion to $7.5 billion.

Overall PSN ranks 6th on our list of the stocks that plummeted on Wednesday. While we acknowledge the potential of PSN as an investment, our conviction lies in the belief that 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 more promising than PSN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.