PSO Stock Analysis: Buy, Sell, or Hold?
PSO - Pearson plc
$16.28
0.21 (1.31%)
▲
5d:
+0.8%
30d:
+1.5%
90d:
+7.6%
BUY
HIGH Confidence
Analysis Updated: Aug 21, 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:
✅ BUY SIGNAL: PSO shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
✅ BUY SIGNAL: PSO shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$19.96
Based on 7.6% avg growth
INTRINSIC VALUE TODAY
$12.39
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 14.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSO is currently trading at $16.28, which is considered oversold relative to its 30-day fair value range of $16.16 to $17.08. From a valuation perspective, the stock is trading at a premium (Forward PE: 16.4) compared to its historical average (14.2). At these levels, the market is pricing in 5.0% annual earnings growth.
Technical Outlook: Technically, PSO is in a strong uptrend. The price is currently testing key support at $15.89. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSO scores 73/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, PSO is in a strong uptrend. The price is currently testing key support at $15.89. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSO scores 73/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$16.16 -
$17.08
Company Quality Score
66/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
89.0%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (73/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($15.70)
- BULLISH: Expecting earnings turnaround to 5.0% growth with 3.3% revenue growth
- BULLISH: Bottoming setup score 73/100 — corrected, stabilizing, and turning up
Trading Range Analysis
30-Day Trading Range
$16.16 -
$17.08
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$15.89
Resistance Level
$16.49
Current Trend
Strong Uptrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.43
Wall Street Target
$15.70
(-2.3%)
Revenue Growth (YoY)
3.3%
Earnings Growth (YoY)
-2.9%
Profit Margin
8.8%
Valuation Premium vs History
+5.0% premium
PE vs Historical
16.4 vs 14.2
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+5.0%
(market-implied from PE analysis)
1-Year Target
$16.87
(+5%)
2-Year Target
$17.72
(+10%)
3-Year Target
$18.60
(+16%)
3-Yr Target (if PE normalizes)
(PE: 16→14)
PE COMPRESSION
$16.08
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 11.1%)
$26.91
(+67%)
Base:
(SPY PE: 16.4, Growth: 11.1%)
$22.03
(+37%)
Bear:
(PE: 14.0, Growth: 11.1%)
$18.72
(+17%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 23.62 | Current EPS (TTM): $0.68
Bull Case
$25.41
(+56%)
Analyst growth 43.8%, PE expands to 26.0
Base Case
$23.10
(+42%)
Market implied 43.8%, PE stable at 23.6
Bear Case
$10.92
(-33%)
Severe decline -20.0%, PE contracts to 20.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: August 24, 2026 4:35 AM ET
Data refreshes hourly during market hours. Next update: 5:35 AM
Data refreshes hourly during market hours. Next update: 5:35 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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