Parsons Corp. (PSN) Hit 20% After Losing in $12-Billion Air Traffic Control Bid

We recently published December Disappointments: 10 Big Names Troubled Early. Parsons Corporation (NYSE:PSN) is one of the worst performers of last week. Parsons Corp. fell by 21.29 percent week-on-week as investor sentiment was dampened by its loss of a billion-dollar air traffic control system contract to its rival, Peraton. On Thursday, the Federal Aviation Administration said that it has awarded to Peraton—a national security company owned by Veritas Capital—its $12.5 billion contract to oversee and overhaul the US air traffic control system. According to the FAA, Peraton possesses the capabilities that matched the project’s requirements, including integrating complex technology platforms and successful collaboration with federal government agencies. Copyright: limonzest / 123RF Stock Photo Commenting on the decision, Parsons Corporation (NYSE:PSN) acknowledged the air traffic control system as a critical priority for the nation’s safe and secure air travel. “Having supported the FAA for nearly 50 years, Parsons proposed a solution based on our understanding of the national airspace mission that aligned with the responsibility we have to our shareholders and employees. We stand ready to support the FAA on our existing contracts and expand our role as an implementation partner,” Parsons Corporation (NYSE:PSN) said. “Parsons is strategically positioned to continue capitalizing on global trends, with industry-leading organic revenue growth, and a global workforce focused on mission delivery for our customers,” it added. Following the FAA decision, investment firm Raymond James downgraded Parsons Corporation (NYSE:PSN) to market perform from strong buy previously. While we acknowledge the potential of PSN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.