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LZ:NASDAQLegalZoom.com, Inc. Analysis

Data as of 2026-05-24 - not real-time

$6.36

Latest Price

8/10Risk

Risk Level: High

Executive Summary

LegalZoom.com, Inc. is currently trading above its short‑term moving average, indicating a modest bullish bias in the near‑term price action. The 14‑day RSI hovering around the 50‑point neutral zone and a bullish MACD histogram reinforce that momentum is balanced but slightly tilted upward. The stock sits on a solid technical support near $5.60 and faces resistance just under $7.00, a range that reflects a narrow price channel despite a 30‑day volatility of roughly 50%, which signals heightened price swings. Fundamentally, the company posts a trailing PE of over 100, far exceeding the industry average PE of roughly 30, suggesting the market is pricing the stock at a premium relative to peers. Revenue growth of about 13% year‑on‑year and a forward PE under 8 point to strong top‑line expansion and a more attractive valuation on a forward basis. However, the absence of any dividend and a modest operating margin mean cash returns to shareholders are limited, and the high beta of just above 1.0 combined with a historic max drawdown near 50% underscores elevated risk. Recent earnings releases highlighted a small profit beat and a revenue beat that fell short of analyst expectations, reinforcing a mixed narrative of operational strength tempered by market sentiment. Overall, the blend of neutral technical momentum, overvalued trailing metrics, robust revenue growth, and pronounced risk factors paints a picture of a stock that may be appealing for longer‑term value investors but warrants caution for short‑term traders.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • price trading above short‑term SMA
  • neutral RSI and bullish MACD
  • high 30‑day volatility and sizable max drawdown

Medium Term

1–3 years
Neutral
Model confidence: 7/10

Key Factors

  • revenue growth outpacing estimates
  • forward PE indicating value
  • absence of dividend limiting cash yield

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • strong top‑line growth trajectory
  • forward valuation discount to peers
  • industry positioning in specialty business services

Key Metrics & Analysis

Financial Health

Revenue Growth12.90%
Profit Margin1.46%
P/E Ratio106.0
ROE6.83%
ROA2.46%
Debt/Equity10.36
P/B Ratio7.5
Op. Cash Flow$174.8M
Free Cash Flow$131.2M
Industry P/E29.7

Technical Analysis

TrendNeutral
RSI51.5
Support$5.60
Resistance$6.93
MA 20$6.34
MA 50$6.18
MA 200$8.67
MACDBullish
VolumeIncreasing
Fear & Greed Index91.61

Valuation

Fair Value$18.03
Target Price$8.14
Upside/Downside28.03%
GradeOvervalued
TypeGrowth

Risk Assessment

Beta1.09
Volatility50.16%
Sector RiskMedium
Reg. RiskHigh
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.