Is there momentum behind the Pearson stock price?
It’s been a frantic race for some of the UK’s largest listed companies over the past year. Economic uncertainty persists and the question on the minds of many investors is where stock prices like Pearson (LON:PSON) will go from here.
Pearson is one of a surprisingly small number of special stocks on the London Stock Exchange whose market valuations exceed £1 billion. The stock currently has a market capitalization of £5,587 million.
These large-cap stocks are closely watched because they have a significant influence on the investment funds and retirement portfolios of millions of savers. So, amid the uncertainty, how has the stock fared?
Over the past 12 months, the Pearson the share price experienced an absolute movement of -12.5%. On a relative basis – which takes into account broader market developments – stocks moved -9.82% over the past year and 31.8% over the past six months.
But what now?
Are analysts pricing it as a buy, sell or hold?
Regardless of recent performance, the main question for investors is what the future holds. In uncertain economic conditions, it is often difficult to have a precise vision. The good news is that analysts generally understand better than most of the biggest companies in the market, so they are well placed to make predictions. It shows in their To buy, Hold and Sale recommendations.
Among analysts covering PearsonThere are currently:
- 2 To buy recommendations
- 9 Hold recommendations
- 0 Sale recommendations
With this type of information, it is possible to begin to form an opinion on the prospects of any stock. A combination of recent price action and analyst recommendations gives you an idea of whether the market is expecting a bright future – or whether there is cause for concern.
What does this mean for potential investors?
Pearson is one of the most watched stocks in the market. But while price trends and broker recommendations can give you an idea of the sentiment around a stock, they can’t tell you everything.
To better understand the overall investment case, it is worth doing a survey yourself. Indeed, we have identified some areas of concern with Pearson which you can read about here.
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