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PSOPearson, PlcSell4.9·$16.15-0.62%
SellModerate Confidence
Investment thesis

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 PiotroskiStable
  • Target Exceeded Negative AsymmetryImproving
  • Weak Momentum Volume DistributionImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Pearson, Plc (PSO) Stock Analysis

Range Bound setup

SellShortModerate Confidence

Communication Services · Publishing

Sell if holding. Analyst target reached at $16.15 — 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: Weak overall score: 4.9/10.

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

$16.15-17.4% A.UpsideScore 4.9/10#4 of 6 Publishing
QualityF-score8 / 9FCF yield8.58%
IncomeYield2.15%(5y avg 2.39%)Payout51.59%sustainable
Stop $15.39Target $17.27(resistance)A.R:R -3.5:1
Analyst target$15.70-2.8%2 analysts
$17.27our TP
$16.15price
$15.70mean
$14
$17

Sell if holding. Analyst target reached at $16.15 — 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: Weak overall score: 4.9/10. Chart setup: RSI 41 mid-range, Bollinger mid-band. Score 4.9/10, moderate confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 196d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-08-15
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Fri, Feb 26, 2027196d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Analyst target reached - limited upside remaining
Weak overall score: 4.9/10
Weak growth

Key Metrics

P/E (TTM)23.9
P/E (Fwd)16.6
Mkt Cap$9.8B
EV/EBITDA19.0
Profit Mgn8.8%
ROE9.2%
Rev Growth3.3%
Beta-0.03
Dividend2.15%
Rating analysts15

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

IV107%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
1.4
Revenue Growth
3.3

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
0.0
Surprise Avg
0.0
Erm
5.0
Earnings Timing
5.0
Dividend Safety
5.8
GatesA.R:R -3.5=NEGATIVEMomentum 5.2<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.2>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 196d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
41 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $15.78Resistance $17.62

Price Targets

$15
$17
A.Upside-17.4%
A.R:R-3.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-17.4% upside)
! Negative risk/reward — downside exceeds upside

Earnings

M
M
M
M
0/4 beats
Next Earnings2027-02-26 (196d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is PSO stock a buy right now?

Sell if holding. Analyst target reached at $16.15 — 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: Weak overall score: 4.9/10. Chart setup: RSI 41 mid-range, Bollinger mid-band. Prior stop was $15.39. Score 4.9/10, moderate confidence.

What is the PSO stock price target?

Take-profit target: $17.27 (-17.4% upside). Prior stop was $15.39. Stop-loss: $15.39.

What are the risks of investing in PSO?

Analyst target reached - limited upside remaining; Weak overall score: 4.9/10; Weak growth.

Is PSO overvalued or undervalued?

Pearson, Plc trades at a P/E of 23.9 (forward 16.6). TrendMatrix value score: 5.5/10. Verdict: Sell.

What do analysts say about PSO?

15 analysts cover PSO with a consensus score of 3.6/5. 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.

Related stocks: WLY (John Wiley & Sons, Inc.) · WLYB (John Wiley & Sons, Inc.) · NYT (New York Times Company (The)) · TDAY (USA TODAY Co., Inc.)
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