PSO Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Pearson PLC (PSO) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock lacks significant positive catalysts, has mixed technical indicators, and shows neutral sentiment from hedge funds and insiders. While the company projects mid-single digit sales growth for 2026, the recent price decline and lack of strong trading signals suggest waiting for a clearer entry point.
The MACD histogram is positive at 0.0952 but contracting, suggesting weakening bullish momentum. RSI is neutral at 66.1, and moving averages are converging, indicating no clear trend. Key support is at 12.544, and resistance is at 13.078. The stock is trading near its pivot level of 12.811.
Pearson reported a 4% increase in FY 2024 adjusted earnings per share and modest revenue growth of 0.8% to £3.58 billion. The company projects mid-single digit sales growth for 2026 and increased dividends.
The stock is down 1.15% in the regular market and 1.23% in pre-market trading. Analysts have lowered price targets, with Morgan Stanley reducing its FY26 and FY27 revenue forecasts. Hedge funds and insiders show neutral sentiment, and there are no significant trading trends. The profit before tax for FY2025 fell to £457 million despite a slight sales increase.
Pearson reported a 4% increase in FY 2024 adjusted earnings per share to 64.5p and modest revenue growth of 0.8% to £3.58 billion. However, profit before tax for FY2025 fell to £457 million. The company anticipates mid-single digit sales growth for 2026.
Analyst sentiment is mixed. Morgan Stanley lowered its price target to 1,120 GBp from 1,170 GBp, citing reduced revenue forecasts for FY26 and FY27. Kepler Cheuvreux upgraded the stock to Hold from Reduce due to the recent share pullback. JPMorgan maintains an Overweight rating with a higher price target of 1,440 GBp.
