PSN Should I Buy
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Parsons Corp (PSN) is not a strong buy at the moment for a beginner investor with a long-term focus. The company is facing headwinds from disappointing financial performance, negative sentiment following its Q4 results, and bearish technical indicators. While analysts maintain positive long-term outlooks, the current market conditions and lack of strong catalysts suggest holding off on investment for now.
The technical indicators for PSN are bearish. The MACD is negatively expanding at -0.868, RSI is at 31.072, indicating neutral momentum, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level of 61.3, with resistance levels at 66.121 and 70.942.
The company achieved a record adjusted EBITDA margin of 9.6%. Analysts maintain Buy or Overweight ratings with long-term optimism, citing strong fundamentals in defense and critical infrastructure.
Q4 financial results missed expectations, leading to a 14.4% drop in stock price. Revenue fell by 8% YoY, and net income dropped by 72.39% YoY. The stock has faced negative sentiment due to the loss of key contracts and disappointing earnings. Technical indicators are bearish, and trading sentiment is neutral.
In Q4 2025, Parsons' revenue decreased by 7.52% YoY to $1.6 billion, net income dropped by 72.39% YoY to $55.58 million, and EPS declined by 69.09% YoY to $0.51. However, gross margin improved by 8.02% YoY to 23.03%.
Analysts have lowered price targets but maintain Buy or Overweight ratings. The average price target remains significantly above the current price, with firms like UBS and Stifel highlighting long-term growth potential despite short-term challenges.
