PSO Stock Analysis: Buy, Sell, or Hold?

PSO - Pearson plc

Books: Publishing or Publishing & Printing
$14.44
-0.12 (-0.82%) ▼
5d: -1.43%
30d: +14.69%
90d: +11.33%
HOLD
MODERATE Confidence
Analysis Updated: Apr 28, 2026 12:00 AM ET
Earnings: Feb 27, 2026 0d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: PSO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$21.35
Based on 8.1% avg growth
INTRINSIC VALUE TODAY
$13.26
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 13.6x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: PSO is currently trading at $14.44, which is considered extended relative to its 30-day fair value range of $12.89 to $14.36. The stock's valuation (Forward PE: 13.5) is in line with its historical norms (13.6). Remarkably, the market is currently pricing in an annual earnings decline of 0.1% over the next few years. This aligns with recent fundamental challenges.

Technical Outlook: Technically, PSO is showing sideways momentum. The price is currently testing key support at $14.02. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: PSO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. 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 EXTENDED
Historical Trading Range $12.89 - $14.36
Company Quality Score 55/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 57.1%

All Signals

  • BEARISH: Price extended above range
  • BULLISH: Strong technical setup (75/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($14.05)

Trading Range Analysis

30-Day Trading Range $12.89 - $14.36
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $14.02
Resistance Level $14.87
Current Trend Sideways
Technical data as of Apr 28, 2026

Fundamental Context

Forward P/E (Next Year Est.) 13.52
Wall Street Target $14.05 (-2.7%)
Revenue Growth (YoY) 3.2%
Earnings Growth (YoY) -35.7%
Profit Margin 9.4%
Valuation Discount vs History -0.1% cheaper
PE vs Historical 13.5 vs 13.6 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -0.1% (market-implied from PE analysis)
1-Year Target $14.43 (0%)
2-Year Target $14.41 (0%)
3-Year Target $14.40 (0%)
3-Yr Target (if PE normalizes) (PE: 14→14) $14.48 (+0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 20.6, Growth: 12.1%) $30.98 (+115%)
Base: (SPY PE: 13.5, Growth: 12.1%) $20.32 (+41%)
Bear: (PE: 11.5, Growth: 12.1%) $17.28 (+20%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (21x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 21.10 | Current EPS (TTM): $0.69
Bull Case $24.79 (+72%)
Analyst growth 54.8%, PE expands to 23.2
Base Case $22.53 (+56%)
Market implied 54.8%, PE stable at 21.1
Bear Case $9.90 (-31%)
Severe decline -20.0%, PE contracts to 17.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 13.5 to 13.6
Stabilization Target: $14.52 (+0.6%)
PE Expansion Potential: +0.6%
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Last updated: April 29, 2026 6:53 AM ET
Data refreshes hourly during market hours. Next update: 7:53 AM
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Insider Activity (6 Months)
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Sells
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Net
NEUTRAL

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