Pearson (PSO) Stock: Buy, Sell, or Hold?
PSO - Pearson plc
$15.69
0.09 (0.58%)
▲
5d:
-2.73%
30d:
-2.67%
90d:
+2.35%
WAIT
LOW Confidence
Analysis Updated: Sep 11, 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:
📊 MIXED SIGNALS: PSO shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: PSO shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$20.29
Based on 7.6% avg growth
INTRINSIC VALUE TODAY
$12.60
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 14.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSO is currently trading at $15.69, which is considered oversold relative to its 30-day fair value range of $15.91 to $16.56. From a valuation perspective, the stock is trading at a premium (Forward PE: 16.0) compared to its historical average (14.4). At these levels, the market is pricing in 3.6% annual earnings growth.
Technical Outlook: Technically, PSO is in a strong uptrend. The price is currently testing key support at $15.52. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSO scores 27/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, PSO is in a strong uptrend. The price is currently testing key support at $15.52. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSO scores 27/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$15.91 -
$16.56
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
55.7%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (27/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($15.70)
- BULLISH: Expecting earnings turnaround to 3.6% growth with 3.3% revenue growth
- WARNING: Composite score 52/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$15.91 -
$16.56
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$15.52
Resistance Level
$16.80
Current Trend
Strong Uptrend
Technical data as of
Sep 11, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.00
Wall Street Target
$15.70
(+0.1%)
Revenue Growth (YoY)
3.3%
Earnings Growth (YoY)
-2.9%
Profit Margin
8.8%
Valuation Premium vs History
+3.6% premium
PE vs Historical
16.0 vs 14.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+3.6%
(market-implied from PE analysis)
1-Year Target
$16.25
(+4%)
2-Year Target
$16.84
(+7%)
3-Year Target
$17.45
(+11%)
3-Yr Target (if PE normalizes)
(PE: 16→14)
PE COMPRESSION
$15.70
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.2, Growth: 11.1%)
$27.12
(+73%)
Base:
(SPY PE: 16.0, Growth: 11.1%)
$21.51
(+37%)
Bear:
(PE: 13.6, Growth: 11.1%)
$18.28
(+17%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (23x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 23.28 | Current EPS (TTM): $0.67
Bull Case
$25.12
(+60%)
Analyst growth 46.4%, PE expands to 25.6
Base Case
$22.83
(+46%)
Market implied 46.4%, PE stable at 23.3
Bear Case
$10.61
(-32%)
Severe decline -20.0%, PE contracts to 19.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: September 13, 2026 5:55 AM ET
Data refreshes hourly during market hours. Next update: 6:55 AM
Data refreshes hourly during market hours. Next update: 6:55 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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