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LegalZoom.com, Inc. (LZ) Stock Analysis

SellVALUE-TRAP 1/5High Confidence

Industrials · Specialty Business Services

Sell if holding. At $6.55, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.6%; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.0).

LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited... Read more

$6.55+9.6% A.UpsideScore 5.1/10#13 of 21 Specialty Business Services
QualityF-score8 / 9FCF yield11.62%
Stop $6.12Target $7.21(analyst − 13%)A.R:R 0.6:1
Analyst target$8.29+26.5%7 analysts
$7.21our TP
$6.55price
$8.29mean
$6
$11

Sell if holding. At $6.55, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.6%; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.0). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.1/10, high confidence.

Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 79d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.

Recent Developments — LegalZoom.com, Inc.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Wide economic moat
Risks
Thin upside margin: 9.6%
V7 low-quality RISK_OFF penalty: -0.5 (Q=5.0)
Sector modifier (Industrials): -0.7

Key Metrics

P/E (TTM)109.7
P/E (Fwd)8.0
Mkt Cap$1.1B
EV/EBITDA31.5
Profit Mgn1.5%
ROE6.8%
Rev Growth12.9%
Beta1.33
DividendNone
Rating analysts18

Quality Signals

Piotroski F8/9MoatWide

Options Flow

P/C0.30bullish
IV67%elevated
Max Pain$18+174.8% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
0.6
Support Resistance
2.6
Bollinger
3.0

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
2.9
Value Rank
3.4
Growth Rank
8.1
Industry growth leader
GatesMomentum 4.3<4.5A.R:R 0.6 < 1.5@spotDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 79d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
51 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $5.60Resistance $6.93

Price Targets

$6
$7
A.Upside+10.1%
A.R:R0.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 4.3/10 — below 4.5 minimum
! Reward/Risk 0.6:1 at current price — below 1.5:1 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

M
M
M
M
0/4 beats
Next Earnings2026-08-06 (79d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is LZ stock a buy right now?

Sell if holding. At $6.55, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.6%; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.0). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $6.12. Score 5.1/10, high confidence.

What is the LZ stock price target?

Take-profit target: $7.21 (+9.6% upside). Prior stop was $6.12. Stop-loss: $6.12.

What are the risks of investing in LZ?

Thin upside margin: 9.6%; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.0); Sector modifier (Industrials): -0.7.

Is LZ overvalued or undervalued?

LegalZoom.com, Inc. trades at a P/E of 109.7 (forward 8.0). TrendMatrix value score: 6.4/10. Verdict: Sell.

What do analysts say about LZ?

18 analysts cover LZ with a consensus score of 3.8/5. Average price target: $8.

What does LegalZoom.com, Inc. do?LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance,...

LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; and intellectual property products consisting of trademark and patent applications, and copyright registrations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and legal forms. In addition, the company offers subscriptions services, including registered agent, compliance, small business attorney advice through our legal plans, compliance concierge, compliance and legal concierge, reinstatement concierge and compliance concierge, business concierge, business and legal concierge, consumer attorney advice through legal plans, business licenses, virtual mail and check deposit services, estate planning bundle, bookkeeping, e-signature, and trademark monitoring. The company was incorporated in 1999 and is headquartered in Mountain View, California.

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