PSO Stock Analysis: Buy, Sell, or Hold?
PSO - Pearson plc
$16.66
0.23 (1.40%)
▲
5d:
+3.67%
30d:
-5.56%
90d:
+10.99%
HOLD
MODERATE Confidence
Analysis Updated: Aug 27, 2026 12:00 AM ET
Earnings: Jul 31, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: PSO trades at premium valuation expecting 6.1% growth. Hold existing positions but don't chase. Wait for better entry.
📊 HOLD: PSO trades at premium valuation expecting 6.1% growth. Hold existing positions but don't chase. Wait for better entry.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$20.10
Based on 7.6% avg growth
INTRINSIC VALUE TODAY
$12.48
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 14.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSO is currently trading at $16.66, which is considered fair relative to its 30-day fair value range of $16.08 to $16.93. From a valuation perspective, the stock is trading at a premium (Forward PE: 17.0) compared to its historical average (14.3). At these levels, the market is pricing in 6.1% annual earnings growth.
Technical Outlook: Technically, PSO is in a strong uptrend. The price is approaching resistance at $16.70. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 58/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, PSO is in a strong uptrend. The price is approaching resistance at $16.70. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 58/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$16.08 -
$16.93
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
68.6%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (58/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($15.70)
- BULLISH: Expecting earnings turnaround to 6.1% growth with 3.3% revenue growth
- NEUTRAL: Bottoming setup forming (58/100) — watch for confirmation
Trading Range Analysis
30-Day Trading Range
$16.08 -
$16.93
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$15.97
Resistance Level
$16.71
Current Trend
Strong Uptrend
Technical data as of
Aug 27, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.03
Wall Street Target
$15.70
(-5.8%)
Revenue Growth (YoY)
3.3%
Earnings Growth (YoY)
-2.9%
Profit Margin
8.8%
Valuation Premium vs History
+6.1% premium
PE vs Historical
17.0 vs 14.3
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+6.1%
(market-implied from PE analysis)
1-Year Target
$17.68
(+6%)
2-Year Target
$18.75
(+13%)
3-Year Target
$19.90
(+19%)
3-Yr Target (if PE normalizes)
(PE: 17→14)
PE COMPRESSION
$16.71
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 11.1%)
$26.91
(+62%)
Base:
(SPY PE: 17.0, Growth: 11.1%)
$22.84
(+37%)
Bear:
(PE: 14.3, Growth: 11.1%)
$19.17
(+15%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 24.16 | Current EPS (TTM): $0.68
Bull Case
$26.00
(+56%)
Analyst growth 43.8%, PE expands to 26.6
Base Case
$23.63
(+42%)
Market implied 43.8%, PE stable at 24.2
Bear Case
$11.17
(-33%)
Severe decline -20.0%, PE contracts to 20.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: August 27, 2026 11:02 PM ET
Data refreshes hourly during market hours. Next update: 12:02 AM
Data refreshes hourly during market hours. Next update: 12:02 AM
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Technical Signals Check
Is PSO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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