Parsons(PSN) ZACKS·2024-12-27 19:10Core Viewpoint - Parsons Corporation (PSN) has shown a stock price increase of 49.2% over the past year, which is lower than the industry average of 54.6% but higher than the S&P 500's growth of 29.1% [1] Group 1: Stock Performance - PSN's stock performance is better than its peers, Cardlytics, Inc. (CDLX) which declined by 58.7%, and GigaCloud Technology Inc. (GCT) which saw a marginal increase [1] - As of the last trading session, PSN stock closed at 114.7 [10] Group 2: Acquisitions and Market Expansion - The acquisition of BlackSignal enhances PSN's customer base in the Department of Defense and Intelligence community, strengthening its capabilities in offensive Cyber operations and electronic warfare [3] - PSN has entered into a definitive agreement to acquire BCC Engineering for 6.6-3.4 per share, indicating a 40.7% increase from the previous year [18] - The Zacks Consensus Estimate for 2024 revenues is $6.8 billion, reflecting a 24.2% growth from the prior year [20] Group 4: Valuation Metrics - PSN's stock is currently priced at 26 times forward 12-month earnings per share, which is lower than the industry average of 41.6 times [6] - The trailing 12-month EV-to-EBITDA ratio for PSN is 15.4 times, significantly below the industry's average of 88.5 times [7] Group 5: Returns and Investor Sentiment - PSN's trailing 12-month return on equity (ROE) is 12.7%, surpassing the industry's average of 3.4% [17] - The company's inclination towards acquisitions that expand its customer base while maintaining a strong balance sheet is expected to drive revenue growth and improve margins [19]