Pearson (PSO) Stock: Buy, Sell, or Hold?
PSO - Pearson plc
$16.12
-0.04 (-0.25%)
▼
5d:
-0.06%
30d:
+0.0%
90d:
-2.54%
HOLD
LOW Confidence
Analysis Updated: Oct 2, 2026 12:00 AM ET
Earnings: Jul 31, 2026
0d
Get Alerted When PSO Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
📊 HOLD: PSO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: PSO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$20.25
Based on 7.4% avg growth
INTRINSIC VALUE TODAY
$12.58
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 14.6x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSO is currently trading at $16.12, which is considered fair relative to its 30-day fair value range of $15.78 to $16.38. From a valuation perspective, the stock is trading at a premium (Forward PE: 16.6) compared to its historical average (14.6). At these levels, the market is pricing in 4.4% annual earnings growth.
Technical Outlook: Technically, PSO is in a uptrend. The price is currently testing key support at $15.75. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSO scores 70/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. 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 uptrend. The price is currently testing key support at $15.75. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSO scores 70/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. 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
$15.78 -
$16.38
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
81.9%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (70/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($15.70)
- BULLISH: Expecting earnings turnaround to 4.4% growth with 3.3% revenue growth
- CAUTION: Bottoming setup, but lagging the sector by 14% over 20 days — wait for relative strength
Trading Range Analysis
30-Day Trading Range
$15.78 -
$16.38
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$15.75
Resistance Level
$16.32
Current Trend
Uptrend
Technical data as of
Oct 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.58
Wall Street Target
$15.70
(-2.6%)
Revenue Growth (YoY)
3.3%
Earnings Growth (YoY)
-2.9%
Profit Margin
8.8%
Valuation Premium vs History
+4.4% premium
PE vs Historical
16.6 vs 14.6
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+4.4%
(market-implied from PE analysis)
1-Year Target
$16.83
(+4%)
2-Year Target
$17.57
(+9%)
3-Year Target
$18.34
(+14%)
3-Yr Target (if PE normalizes)
(PE: 17→15)
PE COMPRESSION
$16.15
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.4, Growth: 10.8%)
$27.01
(+68%)
Base:
(SPY PE: 16.6, Growth: 10.8%)
$21.95
(+36%)
Bear:
(PE: 14.1, Growth: 10.8%)
$18.66
(+16%)
📈
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: 24.48 | Current EPS (TTM): $0.66
Bull Case
$26.18
(+62%)
Analyst growth 47.3%, PE expands to 26.9
Base Case
$23.80
(+48%)
Market implied 47.3%, PE stable at 24.5
Bear Case
$10.99
(-32%)
Severe decline -20.0%, PE contracts to 20.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 03, 2026 11:33 AM ET
Data refreshes hourly during market hours. Next update: 12:33 PM
Data refreshes hourly during market hours. Next update: 12:33 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is PSO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Publishing Stocks
Top-rated stocks in Publishing by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
NYT
New York Times Company |
BUY
10 analysts |
$79 | 39 SELL |
