Parsons (NYSE:PSN) stock offers broad exposure to a number of high-conviction niche tech markets.
There are a number of possible angles that should appeal to Parsons’ investors, from satellite solutions to missile defense, and possibly even quantum computing. Since Parsons has firm financials and multiple government contracts, PSN stock has tremendous potential to move higher in the long term.
Maybe you’ve never heard of Parsons before. It’s a technology company, but that doesn’t adequately describe how diversified Parsons’ business model really is. Parsons works in defense, intelligence, security and infrastructure engineering, among other specializations. Furthermore, the company is known for manufacturing bases for Titan and Minuteman missile sites and silos.
Moreover, if you’re interested in quantum computing, it’s worthwhile to take a closer look at Parsons. As the company constantly evolves toward lucrative tech markets, and early investors should be able to reap the benefits in the coming years.
| PSN | Parsons | $41.15 |
What’s Happening with PSN Stock?
While many technology stocks are in the red this year so far, PSN stock was firmly in the green as of late August. If you’re investing for the long run, $50 and $65 could be reasonable price targets.
But then, you probably won’t want to take profits there after learning more about Parsons. This is a business that’s “Continuously evaluating and shaping” its portfolio and considering disruptive technologies.
These technologies already include missile defense systems, geospatial sensor hardware, full-spectrum cybersecurity solutions and more. Parsons has even delved into chemical warfare munitions solutions, energy conservation and renewables, as well as connected/smart communities.
While Parsons’ data processing and analytics product offerings don’t currently specify quantum computing, it wouldn’t be surprising if the company acquires one or more products in this field at some point. (To clarify, quantum computing uses the properties of subatomic particles to perform simulations and calculations which would not otherwise be practical.)
After all, Parsons already has the ultra-powerful PacketWolf network packet broker and the Paradim data information management solution. Going forward, a foray into quantum computing and adjacent niche tech fields certainly wouldn’t be a stretch for Parsons.
Parsons Is a Financially Stable Business
Just as importantly, Parsons passes any litmus test that fiscally-minded investors might apply. For one thing, the company has multiple government contracts already in place. These include multi-year contracts that should provide steady revenue streams for Parsons.
There’s also plenty of data from the second quarter of 2022 to back up the bullish thesis for PSN stock. During that time, Parsons’ total revenue increased 15% year over year to more than $1 billion. This result beat the analyst consensus estimate by around 10%.
Not only that, but Parsons reported GAAP diluted earnings per share (EPS) of 17 cents in Q2 2022. This represents a vast improvement compared to 6 cents from the prior-year period. It’s also in line with what Wall Street expected.
Perhaps best of all, Parsons’ quarterly operating income increased 61% to $33 million, “primarily due to increased activity on new and existing contracts and stronger program performance.” Clearly, this tech business is firing on all cylinders in 2022.
What You Can Do Now
Will Parsons delve into the high-powered world of quantum computing? It’s a possibility to consider, as this would be in line with Parsons’ constantly growing and evolving technology portfolio.
Moreover, Parsons’ financials suggest that the company is on solid ground and has no problem finding revenue sources. Therefore, to get diversified tech-market exposure instantly in one asset, feel free to consider a position in PSN stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.