Parsons Corp. (NYSE: PSN) is one of the few companies to sit at the intersection of two high-demand growth industries that investors often consider separately: critical infrastructure and defense modernization. While many companies are pivoting toward defense—and plenty of defense-focused investments have done very well so far this year—Parsons has seen share prices go the opposite direction. Its stock has plummeted by more than 25% year to date (YTD).
This decline may be a blessing in disguise for a company that is positioned to meet two very different sets of needs in two high-performing corners of the market. Parsons could be considered a value play. Of course, for this to be the case, the company must be able to make a convincing argument that it is trading below its true value, and to be an even more promising option, Parsons must demonstrate that it has ample growth potential. Its unique dual focus, its acquisition history, and its missile defense business all help to make that case.
