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Parsons (PSN) Soars 5.4%: Is Further Upside Left in the Stock?

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Parsons (PSN) shares rallied 5.4% in the last trading session to close at $40.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.6% gain over the past four weeks.

The stock is benefiting from the company’s healthy organic revenue growth, continued large contract wins and hiring momentum.

 

This software and infrastructure services provider is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of +28.1%. Revenues are expected to be $917.84 million, up 4.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Parsons, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PSN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Parsons is a member of the Zacks Technology Services industry. One other stock in the same industry, Viant Technology (DSP), finished the last trading session 4.3% lower at $5.82. DSP has returned 5.4% over the past month.

For Viant , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.22. This represents a change of -466.7% from what the company reported a year ago. Viant currently has a Zacks Rank of #4 (Sell).


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