Pearson PLC Stock Forward View - Simple Exponential Smoothing

PSO Stock  USD 12.56  0.20  1.62%   
Pearson Stock outlook is based on your current time horizon.
As of today the relative strength momentum indicator of Pearson PLC's share price is below 20 indicating that the stock is significantly oversold. The fundamental principle of the Relative Strength Index (RSI) is to quantify the velocity at which market participants are driving the price of a financial instrument upwards or downwards.

Momentum 0

 Sell Peaked

 
Oversold
 
Overbought
The successful prediction of Pearson PLC's future price could yield a significant profit. We analyze noise-free headlines and recent hype associated with Pearson PLC ADR, which may create opportunities for some arbitrage if properly timed.
Using Pearson PLC hype-based prediction, you can estimate the value of Pearson PLC ADR from the perspective of Pearson PLC response to recently generated media hype and the effects of current headlines on its competitors.
The Simple Exponential Smoothing forecasted value of Pearson PLC ADR on the next trading day is expected to be 12.56 with a mean absolute deviation of 0.15 and the sum of the absolute errors of 9.28.

Pearson PLC after-hype prediction price

    
  USD 12.56  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
Check out Historical Fundamental Analysis of Pearson PLC to cross-verify your projections.

Pearson PLC Additional Predictive Modules

Most predictive techniques to examine Pearson price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Pearson using various technical indicators. When you analyze Pearson charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
Pearson PLC simple exponential smoothing forecast is a very popular model used to produce a smoothed price series. Whereas in simple Moving Average models the past observations for Pearson PLC ADR are weighted equally, Exponential Smoothing assigns exponentially decreasing weights as Pearson PLC ADR prices get older.

Pearson PLC Simple Exponential Smoothing Price Forecast For the 15th of February 2026

Given 90 days horizon, the Simple Exponential Smoothing forecasted value of Pearson PLC ADR on the next trading day is expected to be 12.56 with a mean absolute deviation of 0.15, mean absolute percentage error of 0.07, and the sum of the absolute errors of 9.28.
Please note that although there have been many attempts to predict Pearson Stock prices using its time series forecasting, we generally do not suggest using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Pearson PLC's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Pearson PLC Stock Forecast Pattern

Backtest Pearson PLC  Pearson PLC Price Prediction  Research Analysis  

Pearson PLC Forecasted Value

In the context of forecasting Pearson PLC's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Pearson PLC's downside and upside margins for the forecasting period are 10.57 and 14.55, respectively. We have considered Pearson PLC's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
12.56
12.56
Expected Value
14.55
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Simple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Pearson PLC stock data series using in forecasting. Note that when a statistical model is used to represent Pearson PLC stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria113.6632
BiasArithmetic mean of the errors 0.0103
MADMean absolute deviation0.1547
MAPEMean absolute percentage error0.0119
SAESum of the absolute errors9.28
This simple exponential smoothing model begins by setting Pearson PLC ADR forecast for the second period equal to the observation of the first period. In other words, recent Pearson PLC observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Pearson PLC

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Pearson PLC ADR. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Pearson PLC's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
10.5712.5614.55
Details
Intrinsic
Valuation
LowRealHigh
11.6313.6215.61
Details

Pearson PLC After-Hype Price Density Analysis

As far as predicting the price of Pearson PLC at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Pearson PLC or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Pearson PLC, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Pearson PLC Estimiated After-Hype Price Volatility

In the context of predicting Pearson PLC's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Pearson PLC's historical news coverage. Pearson PLC's after-hype downside and upside margins for the prediction period are 10.57 and 14.55, respectively. We have considered Pearson PLC's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models compare with traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
12.56
12.56
After-hype Price
14.55
Upside
Pearson PLC is not too volatile at this time. Analysis and calculation of next after-hype price of Pearson PLC ADR is based on 3 months time horizon.

Pearson PLC Stock Price Outlook Analysis

Have you ever been surprised when a price of a Company such as Pearson PLC is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Pearson PLC backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Pearson PLC, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.06 
1.99
 0.00  
  0.03 
0 Events / Month
4 Events / Month
Within a week
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
12.56
12.56
0.00 
0.00  
Notes

Pearson PLC Hype Timeline

On the 14th of February 2026 Pearson PLC ADR is traded for 12.56. The entity stock is not elastic to its hype. The average elasticity to hype of competition is -0.03. Pearson is projected not to react to the next headline, with the price staying at about the same level, and average media hype impact volatility is insignificant. The immediate return on the next news is projected to be very small, whereas the daily expected return is at this time at -0.06%. %. The volatility of related hype on Pearson PLC is about 379.05%, with the expected price after the next announcement by competition of 12.53. The company has price-to-book ratio of 1.6. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Pearson PLC ADR last dividend was issued on the 15th of August 2025. The entity had 110:100 split on the April 4, 2014. Considering the 90-day investment horizon the next projected press release will be within a week.
Check out Historical Fundamental Analysis of Pearson PLC to cross-verify your projections.

Pearson PLC Related Hype Analysis

Having access to credible news sources related to Pearson PLC's direct competition is more important than ever and may enhance your ability to predict Pearson PLC's future price movements. Getting to know how Pearson PLC's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Pearson PLC may potentially react to the hype associated with one of its peers.
Hype
Elasticity
News
Density
Semi
Deviation
Information
Ratio
Potential
Upside
Value
At Risk
Maximum
Drawdown
NYTNew York Times 0.00 0 per month 1.36  0.13  2.68 (1.45) 9.79 
KTKT Corporation 0.00 0 per month 0.00  0.31  2.35 (1.25) 4.71 
IPGInterpublic Group 0.00 0 per month 0.00 (0.12) 4.77 (2.53) 7.29 
LBRDALiberty Broadband Srs(0.22)5 per month 2.07  0.07  4.56 (3.87) 10.40 
FYBRFrontier Communications Parent 0.00 0 per month 0.00 (0.18) 0.31 (0.21) 0.68 
LUMNLumen Technologies(0.62)8 per month 0.00 (0.04) 7.65 (7.57) 32.97 
SKMSK Telecom Co(0.28)10 per month 0.69  0.29  3.99 (1.34) 16.18 
TIMBTIM Participacoes SA(0.03)9 per month 2.01  0.09  3.43 (3.24) 9.25 
TIGOMillicom International Cellular(0.36)9 per month 2.41  0.13  3.54 (3.25) 14.39 
LLYVKLiberty Live Holdings(3.74)8 per month 1.48  0.03  3.53 (2.88) 8.17 

Other Forecasting Options for Pearson PLC

For every potential investor in Pearson, whether a beginner or expert, Pearson PLC's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Pearson Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Pearson. Basic forecasting techniques help filter out the noise by identifying Pearson PLC's price trends.

Pearson PLC Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Pearson PLC stock to make a market-neutral strategy. Peer analysis of Pearson PLC could also be used in its relative valuation, which is a method of valuing Pearson PLC by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Pearson PLC Market Strength Events

Market strength indicators help investors to evaluate how Pearson PLC stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Pearson PLC shares will generate the highest return on investment. By undertsting and applying Pearson PLC stock market strength indicators, traders can identify Pearson PLC ADR entry and exit signals to maximize returns.

Pearson PLC Risk Indicators

The analysis of Pearson PLC's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Pearson PLC's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting pearson stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Story Coverage note for Pearson PLC

The number of cover stories for Pearson PLC depends on current market conditions and Pearson PLC's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Pearson PLC is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Pearson PLC's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Pearson PLC Short Properties

Pearson PLC's future price predictability will typically decrease when Pearson PLC's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Pearson PLC ADR often depends not only on the future outlook of the potential Pearson PLC's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Pearson PLC's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding684 M
Cash And Short Term Investments543 M
When determining whether Pearson PLC ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Pearson PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pearson Plc Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pearson Plc Adr Stock:
Check out Historical Fundamental Analysis of Pearson PLC to cross-verify your projections.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Will Publishing sector continue expanding? Could Pearson diversify its offerings? Factors like these will boost the valuation of Pearson PLC. Anticipated expansion of Pearson directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Pearson PLC data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Investors evaluate Pearson PLC ADR using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Pearson PLC's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Pearson PLC's market price to deviate significantly from intrinsic value.
It's important to distinguish between Pearson PLC's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Pearson PLC should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Pearson PLC's market price signifies the transaction level at which participants voluntarily complete trades.