Pearson plc converts free cash flow at 258% of net income and holds a Piotroski F-Score of 8/9, reflecting high underlying cash generation quality, but the stock has exceeded analyst targets by nearly 21%, momentum is soft with only 4.1 momentum score, and revenue growth is flat at best.
Thesis pillars
- Exceptional Fcf Conversion Piotroski→Stable
- Target Exceeded Negative Asymmetry↑Improving
- Weak Momentum Volume Distribution↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026· older than 90 days
Pearson, Plc (PSO) Stock Analysis
Range Bound setup
Communication Services · Publishing
Sell if holding. Analyst target reached at $17.13 — A.R:R is negative (-4.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Communication Services): -0.8.
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English... Read more
Sell if holding. Analyst target reached at $17.13 — A.R:R is negative (-4.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Communication Services): -0.8. Chart setup: RSI 47 mid-range, Bollinger mid-band. Score 4.8/10, high confidence.
Passes 5/7 gates (clean insider activity, no SEC red flags, earnings proximity 113d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated Nov 4, 2026Recent Developments — Pearson, Plc
Latest news
- NEWS Pearson and Westermann Announce Strategic Collaboration in Germany — fiscal.ai Nov 4, 2026 positive
- NEWS Pearson And Westermann Team Up To Give German Schools Trusted Route For English Certification For Study And Work — benzinga Nov 4, 2026 positive
- NEWS Pearson Announces Partnership with WorldSkills Australia — fiscal.ai Nov 3, 2026 positive
- NEWS Pearson Hosts 'Pearson Day Thailand' to Discuss AI in Education — fiscal.ai Nov 3, 2026 neutral
- NEWS Pearson plc Announces Issue of Equity — fiscal.ai Nov 2, 2026 neutral
Latest item Nov 4, 2026 · Generated 2026-11-04T12:04:36Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $17.13 — A.R:R is negative (-4.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Communication Services): -0.8. Chart setup: RSI 47 mid-range, Bollinger mid-band. Prior stop was $16.43. Score 4.8/10, high confidence.
Analyst target $13.73 reached (−19.9% from $17.13); no take-profit level is published. Prior stop was $16.43. Stop-loss: $16.43.
Analyst target reached - limited upside remaining; Sector modifier (Communication Services): -0.8; Earnings estimates trending DOWN.
Pearson, Plc trades at a P/E of 26.0 (forward 17.6). TrendMatrix value score: 5.3/10. Verdict: Sell.
17 analysts rate PSO, with a consensus score of 2.5/5. 2 analysts publish price targets averaging $16.
What does Pearson, Plc do?Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States,...
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Enterprise Learning & Skills, and Higher Education. The Assessment & Qualifications segment offers pearson professional assessments, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware, including the English-speaking Canadian and Australian K-12 businesses, and PDR. The Virtual Learning segment provides virtual schools and online program management. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Enterprise Learning & Skills segment provides vocational qualifications, GED, TalentLens, Faethm, Credly, Pearson College, and Enterprise content and training. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. Pearson plc was founded in 1844 and is headquartered in London, the United Kingdom.