Is LegalZoom Stock a Good Investment?

LegalZoom Investment Advice

  LZ
To provide specific investment advice or recommendations on LegalZoom stock, we recommend investors consider the following general factors when evaluating LegalZoom. This will help you to make an informed decision on whether to include LegalZoom in one of your diversified portfolios:
  • Examine LegalZoom's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research LegalZoom's leadership team and their track record. Good management can help LegalZoom navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Environmental & Facilities Services space and any emerging trends that could impact LegalZoom's business and its evolving consumer preferences.
  • Compare LegalZoom's performance and market position to its competitors. Analyze how LegalZoom is positioned in terms of product offerings, innovation, and market share.
  • Check if LegalZoom pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about LegalZoom's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in LegalZoom stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if LegalZoom is a good investment.
 
Sell
 
Buy
Hold
We provide investment recommendation to complement the last-minute expert consensus on LegalZoom. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time. To make sure LegalZoom is not overpriced, please verify all LegalZoom fundamentals, including its price to earning, book value per share, current asset, as well as the relationship between the net income and number of employees . Given that LegalZoom has a price to earning of 9.82 X, we recommend you to check LegalZoom market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance

OKDetails

Volatility

Somewhat reliableDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

HoldDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails

Examine LegalZoom Stock

Researching LegalZoom's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 84.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.55. LegalZoom had not issued any dividends in recent years.
To determine if LegalZoom is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding LegalZoom's research are outlined below:
LegalZoom had very high historical volatility over the last 90 days
Over 84.0% of the company shares are owned by institutional investors
Latest headline from thelincolnianonline.com: 166,335 Shares in LegalZoom.com, Inc. Bought by Picton Mahoney Asset Management
LegalZoom uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in LegalZoom. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to LegalZoom's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
22nd of February 2024
Upcoming Quarterly Report
View
14th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
22nd of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact LegalZoom's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises LegalZoom's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2024-08-07
2024-06-300.090.10.0111 
2024-05-07
2024-03-310.10.09-0.0110 
2023-05-09
2023-03-310.060.070.0116 
2022-11-10
2022-09-300.040.050.0125 
2021-08-12
2021-06-300.020.030.0150 
2024-11-06
2024-09-300.150.170.0213 
2021-11-10
2021-09-300.030.01-0.0266 
2025-06-06
2025-03-310.10.130.0330 

LegalZoom Target Price Consensus

LegalZoom target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. LegalZoom's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   10  Hold
Most LegalZoom analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand LegalZoom stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of LegalZoom, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

LegalZoom Target Price Projection

LegalZoom's current and average target prices are 8.76 and 9.79, respectively. The current price of LegalZoom is the price at which LegalZoom is currently trading. On the other hand, LegalZoom's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

LegalZoom Market Quote on 5th of August 2025

Low Price8.69Odds
High Price8.85Odds

8.76

Target Price

Analyst Consensus On LegalZoom Target Price

Low Estimate8.9Odds
High Estimate10.86Odds

9.7857

Historical Lowest Forecast  8.9 Target Price  9.79 Highest Forecast  10.86
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on LegalZoom and the information provided on this page.

LegalZoom Analyst Ratings

LegalZoom's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about LegalZoom stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of LegalZoom's financials, market performance, and future outlook by experienced professionals. LegalZoom's historical ratings below, therefore, can serve as a valuable tool for investors.

Know LegalZoom's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as LegalZoom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading LegalZoom backward and forwards among themselves. LegalZoom's institutional investor refers to the entity that pools money to purchase LegalZoom's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Jacobs Levy Equity Management, Inc.2025-03-31
2.2 M
Nuveen, Llc2025-03-31
2.2 M
Dimensional Fund Advisors, Inc.2025-03-31
1.9 M
Ararat Capital Management, Lp2025-03-31
1.3 M
Goldman Sachs Group Inc2025-03-31
1.3 M
Morgan Stanley - Brokerage Accounts2025-03-31
1.3 M
Driehaus Capital Management Llc2025-03-31
1.3 M
Llbh Private Wealth Management, Llc2025-03-31
1.2 M
Hillman Co2025-06-30
1.2 M
Francisco Partners Management Lp2025-03-31
28.6 M
Vanguard Group Inc2025-03-31
20.2 M
Note, although LegalZoom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

LegalZoom's market capitalization trends

The company currently falls under 'Mid-Cap' category with a market capitalization of 1.57 B.

LegalZoom's profitablity analysis

The company has Net Profit Margin (PM) of 0.04 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of (0.02) %, which signifies that for every 100 dollars of sales, it has a net operating loss of $0.02.
Determining LegalZoom's profitability involves analyzing its financial statements and using various financial metrics to determine if LegalZoom is a good buy. For example, gross profit margin measures LegalZoom's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of LegalZoom's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in LegalZoom's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of LegalZoom. Check LegalZoom's Beneish M Score to see the likelihood of LegalZoom's management manipulating its earnings.

Evaluate LegalZoom's management efficiency

LegalZoom has Return on Asset (ROA) of 0.0418 % which means that for every $100 of assets, it generated a profit of $0.0418. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.1709 %, which means that it produced $0.1709 on every 100 dollars invested by current stockholders. LegalZoom's management efficiency ratios could be used to measure how well LegalZoom manages its routine affairs as well as how well it operates its assets and liabilities.
Evaluating the management effectiveness of LegalZoom allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The LegalZoom Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta
1.235

Basic technical analysis of LegalZoom Stock

As of the 5th of August, LegalZoom secures the Risk Adjusted Performance of 0.0756, downside deviation of 1.96, and Mean Deviation of 1.56. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of LegalZoom, as well as the relationship between them.

LegalZoom's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific LegalZoom insiders, such as employees or executives, is commonly permitted as long as it does not rely on LegalZoom's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases LegalZoom insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

LegalZoom's Outstanding Corporate Bonds

LegalZoom issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. LegalZoom uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most LegalZoom bonds can be classified according to their maturity, which is the date when LegalZoom has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand LegalZoom's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing LegalZoom's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider LegalZoom's intraday indicators

LegalZoom intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of LegalZoom stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

LegalZoom Corporate Filings

8K
17th of July 2025
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F4
10th of July 2025
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
10Q
8th of May 2025
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
22nd of April 2025
Other Reports
ViewVerify
LegalZoom time-series forecasting models is one of many LegalZoom's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary LegalZoom's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

LegalZoom Stock media impact

There is far too much social signal, news, headlines, and media speculation about LegalZoom that are available to investors today. This information is accessible both publicly - through LegalZoom's media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of LegalZoom-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of LegalZoom news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of LegalZoom relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to LegalZoom's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive LegalZoom alpha.

LegalZoom Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards LegalZoom can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

LegalZoom Historical Investor Sentiment

Investor biases related to LegalZoom's public news can be used to forecast risks associated with an investment in LegalZoom. The trend in average sentiment can be used to explain how an investor holding LegalZoom can time the market purely based on public headlines and social activities around LegalZoom. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
LegalZoom's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for LegalZoom and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average LegalZoom news discussions. The higher the estimate score, the more favorable the investor's outlook on LegalZoom.

LegalZoom Maximum Pain Price Across September 19th 2025 Option Contracts

LegalZoom's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of LegalZoom close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of LegalZoom's options.

LegalZoom Corporate Management

Additional Tools for LegalZoom Stock Analysis

When running LegalZoom's price analysis, check to measure LegalZoom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LegalZoom is operating at the current time. Most of LegalZoom's value examination focuses on studying past and present price action to predict the probability of LegalZoom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LegalZoom's price. Additionally, you may evaluate how the addition of LegalZoom to your portfolios can decrease your overall portfolio volatility.