Parsons (PSN) Soars 8.3%: Is Further Upside Left in the Stock?

Parsons (PSN) shares ended the last trading session 8.3% higher at $50.94. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20% loss over the past four weeks.The stock is benefiting from recent contract wins, growing optimism around its AI-driven cyber and counter-drone capabilities, and improving investor sentiment following significant insider buying. Trading near 52-week lows, PSN also attracted buy-the-dip interest as investors viewed the shares as undervalued relative to consensus price targets.This software and infrastructure services provider is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of -5.1%. Revenues are expected to be $1.61 billion, up 1.4% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Parsons, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PSN going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Parsons is part of the Zacks Technology Services industry. Ingram Micro (INGM), another stock in the same industry, closed the last trading session 0.6% lower at $27.53. INGM has returned 2.3% in the past month.For Ingram Micro, the consensus EPS estimate for the upcoming report has changed +1.1% over the past month to $0.73. This represents a change of +19.7% from what the company reported a year ago. Ingram Micro currently has a Zacks Rank of #3 (Hold).Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks