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↓Deteriorating
- Weak Momentum Volume Distribution↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pearson, Plc (PSO) Stock Analysis
Range Bound setup
Communication Services · Publishing
Sell if holding. Analyst target reached at $16.01 — A.R:R is negative (-3.5) — 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 $16.01 — A.R:R is negative (-3.5) — 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 49 mid-range, Bollinger mid-band. Score 4.8/10, high confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 175d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-09-04Recent Developments — Pearson, Plc
Latest news
- NEWS Pearson (NYSE:PSO) Reaches New 12-Month High - Here's Why - MarketBeat — MarketBeat positive
- NEWS Pearson PLC (PSO) Stock Up 4.2% but GF Value Says Overvalued -- GF Score: 77/100 - GuruFocus — GuruFocus positive
- NEWS PSO sends crews to Texas ahead of Tropical Storm Bertha - KRMG — KRMG neutral
- NEWS Pearson, PLC (NYSE:PSO) Given Consensus Recommendation of "Hold" by Brokerages - MarketBeat — MarketBeat neutral
- NEWS Pearson (NYSE:PSO) Share Price Crosses Above Two Hundred Day Moving Average - Should You Sell? - MarketBeat — MarketBeat neutral
Generated 2026-09-04T13:27:38Z.
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.
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Rating Breakdown
2 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
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $16.01 — A.R:R is negative (-3.5) — 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 49 mid-range, Bollinger mid-band. Prior stop was $15.59. Score 4.8/10, high confidence.
Take-profit target: $16.46 (-17.3% upside). Prior stop was $15.59. Stop-loss: $15.59.
Analyst target reached - limited upside remaining; Sector modifier (Communication Services): -0.8; Negative news sentiment (-0.67).
Pearson, Plc trades at a P/E of 23.7 (forward 16.5). TrendMatrix value score: 5.6/10. Verdict: Sell.
15 analysts cover PSO with a consensus score of 3.4/5. Average price target: $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.