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  • Professor Andrea M. Armani, University of Southern California
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Parsons (PSN) Stock Is Up Today

PSN Cover Image

What Happened?

Shares of infrastructure and defense services provider Parsons (NYSE: PSN) jumped 3.1% in the morning session after Baird upgraded the stock to Outperform from Neutral, citing a strong growth outlook. The investment firm also raised its price target to $92 from $78. Baird pointed to expectations of double-digit organic growth and noted potential near-term catalysts that appeared not yet reflected in the stock price. This move followed the company's second-quarter report from the previous day, in which Parsons raised its full-year outlook for revenue and cash flow. The positive sentiment was echoed by Keybanc, which also maintained an "Overweight" rating and increased its price target for the company.

After the initial pop the shares cooled down to $76.40, up 0.6% from previous close.

Is now the time to buy Parsons? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Parsons’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 21 days ago when the stock gained 3.1% as the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed. Investors were also encouraged by several positive reports that painted a picture of a resilient consumer. One key report revealed that shoppers increased their spending at U.S. retailers more than economists had anticipated. Precisely, retail sales increased 0.6% from May, surpassing the 0.2% estimate. This robust consumer spending is a crucial pillar supporting the economy. 

Adding to the positive sentiment, the latest data on unemployment claims showed a decrease in the number of workers applying for benefits, signaling that layoffs remain limited and the job market is steady. This combination of strong earnings reports, retail sales, and a solid labor market suggests the economy is navigating challenges successfully.

Parsons is down 15.6% since the beginning of the year, and at $76.40 per share, it is trading 32.6% below its 52-week high of $113.31 from November 2024. Investors who bought $1,000 worth of Parsons’s shares 5 years ago would now be looking at an investment worth $2,183.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

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