PSO Stock Analysis: Buy, Sell, or Hold?
PSO - Pearson plc
$16.46
-1.16 (-6.56%)
▼
5d:
-2.4%
30d:
+7.34%
90d:
+19.67%
BUY
MODERATE Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Jul 31, 2026
16d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: PSO shows positive signals but monitor for confirmation. Market pricing in 6.5% growth. Moderate conviction.
💡 BUY OPPORTUNITY: PSO shows positive signals but monitor for confirmation. Market pricing in 6.5% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$21.39
Based on 8.0% avg growth
INTRINSIC VALUE TODAY
$13.28
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 13.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSO is currently trading at $16.45, which is considered slightly high relative to its 30-day fair value range of $15.06 to $16.60. From a valuation perspective, the stock is trading at a premium (Forward PE: 16.8) compared to its historical average (13.9). At these levels, the market is pricing in 6.5% annual earnings growth.
Technical Outlook: Technically, PSO is in a strong uptrend. The price is approaching resistance at $15.64. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. Short-term momentum is weak, with the stock down 6.6% recently.
Market Sentiment: PSO has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $14.20. 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 approaching resistance at $15.64. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. Short-term momentum is weak, with the stock down 6.6% recently.
Market Sentiment: PSO has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $14.20. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$15.06 -
$16.60
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
65.2%
All Signals
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-6.6%)
- BEARISH: Trading 19.4% above Wall St target ($14.20)
- BULLISH: Expecting earnings turnaround to 6.5% growth with 3.2% revenue growth
Trading Range Analysis
30-Day Trading Range
$15.06 -
$16.60
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$14.69
Resistance Level
$15.64
Current Trend
Strong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.78
Wall Street Target
$14.20
(-19.4%)
Revenue Growth (YoY)
3.2%
Earnings Growth (YoY)
-35.7%
Profit Margin
9.4%
Valuation Premium vs History
+6.5% premium
PE vs Historical
16.8 vs 13.9
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+6.5%
(market-implied from PE analysis)
1-Year Target
$18.75
(+7%)
2-Year Target
$19.97
(+13%)
3-Year Target
$21.27
(+21%)
3-Yr Target (if PE normalizes)
(PE: 17→14)
PE COMPRESSION
$17.62
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 12.0%)
$32.13
(+83%)
Base:
(SPY PE: 16.8, Growth: 12.0%)
$24.76
(+41%)
Bear:
(PE: 13.9, Growth: 12.0%)
$20.51
(+17%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (25x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 25.24 | Current EPS (TTM): $0.67
Bull Case
$29.13
(+65%)
Analyst growth 56.6%, PE expands to 27.8
Base Case
$26.48
(+50%)
Market implied 56.6%, PE stable at 25.2
Bear Case
$11.50
(-35%)
Severe decline -20.0%, PE contracts to 21.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 14, 2026 11:47 AM ET
Data refreshes hourly during market hours. Next update: 12:47 PM
Data refreshes hourly during market hours. Next update: 12:47 PM
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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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