LZ:NASDAQLegalZoom.com, Inc. Analysis
Data as of 2026-05-24 - not real-time
Latest Price
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 yearKey Factors
- price trading above short‑term SMA
- neutral RSI and bullish MACD
- high 30‑day volatility and sizable max drawdown
Medium Term
1–3 yearsKey Factors
- revenue growth outpacing estimates
- forward PE indicating value
- absence of dividend limiting cash yield
Long Term
> 3 yearsKey Factors
- strong top‑line growth trajectory
- forward valuation discount to peers
- industry positioning in specialty business services
Key Metrics & Analysis
Financial Health
Technical Analysis
Valuation
Risk Assessment
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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.