PSO Stock Analysis: Buy, Sell, or Hold?
PSO - Pearson plc
$16.76
-0.18 (-1.06%)
▼
5d:
+0.12%
30d:
+0.3%
90d:
+11.14%
BUY
MODERATE Confidence
Analysis Updated: Jul 31, 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 OPPORTUNITY: PSO shows positive signals but monitor for confirmation. Market pricing in 6.7% growth. Moderate conviction.
💡 BUY OPPORTUNITY: PSO shows positive signals but monitor for confirmation. Market pricing in 6.7% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$19.91
Based on 7.6% avg growth
INTRINSIC VALUE TODAY
$12.36
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 14.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSO is currently trading at $16.76, which is considered slightly high relative to its 30-day fair value range of $15.67 to $17.19. From a valuation perspective, the stock is trading at a premium (Forward PE: 17.1) compared to its historical average (14.1). At these levels, the market is pricing in 6.7% annual earnings growth.
Technical Outlook: Technically, PSO is in a strong uptrend. Immediate support is located at $15.99, while resistance sits at $17.75.
Market Sentiment: PSO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, PSO is in a strong uptrend. Immediate support is located at $15.99, while resistance sits at $17.75.
Market Sentiment: PSO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$15.67 -
$17.19
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
All Signals
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($15.70)
- BULLISH: Expecting earnings turnaround to 6.7% growth with 3.3% revenue growth
Trading Range Analysis
30-Day Trading Range
$15.67 -
$17.19
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$15.99
Resistance Level
$17.75
Current Trend
Strong Uptrend
Technical data as of
Aug 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.06
Wall Street Target
$15.70
(-6.3%)
Revenue Growth (YoY)
3.3%
Earnings Growth (YoY)
-2.9%
Profit Margin
8.8%
Valuation Premium vs History
+6.7% premium
PE vs Historical
17.1 vs 14.1
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+6.7%
(market-implied from PE analysis)
1-Year Target
$17.88
(+7%)
2-Year Target
$19.08
(+14%)
3-Year Target
$20.36
(+22%)
3-Yr Target (if PE normalizes)
(PE: 17→14)
PE COMPRESSION
$16.83
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: 11.1%)
$27.91
(+67%)
Base:
(SPY PE: 17.1, Growth: 11.1%)
$22.96
(+37%)
Bear:
(PE: 14.1, Growth: 11.1%)
$18.98
(+13%)
📈
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: 25.28 | Current EPS (TTM): $0.67
Bull Case
$27.33
(+63%)
Analyst growth 46.7%, PE expands to 27.8
Base Case
$24.84
(+48%)
Market implied 46.7%, PE stable at 25.3
Bear Case
$11.52
(-31%)
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: August 03, 2026 11:16 PM ET
Data refreshes hourly during market hours. Next update: 12:16 AM
Data refreshes hourly during market hours. Next update: 12:16 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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