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Hailing from the enterprise software industry, Parsons (IBD) and Palantir Technologies (PLTR) both tap artificial intelligence to help drive the future of the defense, intelligence and critical infrastructure markets. But while PLTR stock has stumbled at the start of 2024, Parsons stock stands ready to rocket into buy range.
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Institutional demand for both of these AI leaders remains strong. Parsons and Palantir both made this month’s list of new buys by the best mutual funds.
But Parsons stock currently has the upper hand on Palantir in certain metrics, including Composite Rating. PSN’s 97 rating slightly edges out the 96 grade for PLTR stock.
Parsons Stock Vs. Palantir Stock
Palantir has driven explosive earnings growth in recent quarters, including a 600% spike to 7 cents a share posted on Nov. 2. That tops a strong but more moderate 44% gain to 69 cents for Parsons in its latest report on Nov. 1.
Yet, the 91 EPS Rating for Parsons beats the 84 rating for Palantir.
Showing stronger demand over the last 13 weeks, the A- Accumulation/Distribution Rating for PSN tops the C+ grade for PLTR stock.
Parsons also outpaces Palantir in terms of up/down volume ratios. Where anything above 1.0 shows demand, Parsons earns a 1.8, solidly above the 1.2 ratio for Palantir.
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Parsons | (PSN) | 97 | 91 | 89 | B | A- |
| Palantir Technologies | (PLTR) | 96 | 84 | 94 | B | C+ |
Parsons Nears Breakout As Palantir Stock Regroups
Featured in this column Nov. 20 while launching a breakout, PLTR stock then fizzled to close out the year. Palantir now trades below its 50-day moving average. Also note that its 21-day exponential moving average has been on a downward slope, falling back below the 50-day benchmark.
Palantir perked up in recent days, but is down again early Thursday.
Meanwhile, Parsons stock has posted five straight up days. But that streak may end Thursday as it reverses lower off the day’s highs. Volume, however, is low on the pullback and the stock is only down slightly.
PSN remains above both its 21-day and 50-day lines, It continues to trade in a tight range in a first-stage flat base. The buy point is 64.63.
The relative strength line for PLTR stock cratered as Palantir floundered at the end of last year. The RS line for Parsons has moved sideways over the last month, but now appears to be curling upward. Look for the relative strength line to move closer to a 52-week high as the AI and defense leader takes aim a new breakout.
Parsons Taps AI To Deliver Combat Advantage
To deliver a combat advantage to warfighters operating at the tactical edge, Parsons uses AI to combine combat-tested technologies with historically challenging Cyber and Electromagnetic Activities (CEMA) capabilities.
The U.S. Army has integrated this solution into live events. The technology assists soldiers in developing courses of action for missions using live, virtual, and simulated sensors and intelligence data.
$292 Million In New Deals, Awards Boost PSN Stock
On Dec. 19, Parsons announced a classified contract for continued work in support of the U.S. government. The deal is valued at $250 million. It has a base period of one year with four one-year options.
On Jan. 8, Parsons said that the company also received a $21 million task order by the National Nuclear Security Administration (NNSA) Office of Infrastructure. The task order is for design and construction management support at Los Alamos National Laboratory and has a three-year period of performance.
Parsons also announced a $21 million award on the Camp San Luis Obispo Munitions Response Site 05 by the United States Army Corps of Engineers in the Los Angeles District. With Parsons serving as a subcontractor, the five-year contract is new work for the company.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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