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LegalZoom.com, Inc. (LZ) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5High Confidence

Industrials · Specialty Business Services

Earnings in 6 days (2026-05-06). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $6.38, A.R:R 1.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 8.4): -1.5; Earnings in 6 days (event risk).

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

$6.38+18.5% A.UpsideScore 5.2/10#11 of 21 Specialty Business Services
Stop $5.95Target $7.58(analyst − 13%)A.R:R 1.2:1
Analyst target$8.71+36.6%7 analysts
$7.58our TP
$6.38price
$8.71mean
$11

Sell if holding. At $6.38, A.R:R 1.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 8.4): -1.5; Earnings in 6 days (event risk). Chart setup: Death cross but MACD improving, RSI 71. Score 5.2/10, high confidence.

Passes 5/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: aggressive.

Thesis

Rewards
No bull case signals
Risks
Leverage penalty (D/E 8.4): -1.5
Earnings in 6 days (event risk)
Elevated risk factors

Key Metrics

P/E (TTM)80.9
P/E (Fwd)8.0
Mkt Cap$1.1B
EV/EBITDA41.1
Profit Mgn2.0%
ROE11.6%
Rev Growth17.7%
Beta1.30
DividendNone
Rating analysts18

Quality Signals

Piotroski F7/9

Options Flow

P/C0.60bullish
IV112%elevated
Max Pain$3-53.0% 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
0.3
Support Resistance
2.7
Bollinger
3.5

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
0.0
Surprise Avg
1.1
Erm
5.0
Earnings Timing
5.0
Earnings in 6 days
GatesA.R:R 1.2 < 1.5@spotEARNINGS PROXIMITY 6d<=7dMomentum 5.3<5.5 (soft — BUY_NOW allowed but watch)Death cross (50MA < 200MA)Momentum 5.3>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
71 · Overbought
20D MA 50D MA 200D MADEATH CROSSSupport $5.28Resistance $6.81

Price Targets

$6
$8
A.Upside+18.8%
A.R:R1.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Reward/Risk 1.2:1 at current price — below 1.5:1 minimum
! EARNINGS_PROXIMITY:6d<=7d

Earnings

M
M
M
M
0/4 beats
Next Earnings2026-05-06 (6d)

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 $6.38, A.R:R 1.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 8.4): -1.5; Earnings in 6 days (event risk). Chart setup: Death cross but MACD improving, RSI 71. Prior stop was $5.95. Score 5.2/10, high confidence.

What is the LZ stock price target?

Take-profit target: $7.58 (+18.5% upside). Prior stop was $5.95. Stop-loss: $5.95.

What are the risks of investing in LZ?

Leverage penalty (D/E 8.4): -1.5; Earnings in 6 days (event risk); Elevated risk factors.

Is LZ overvalued or undervalued?

LegalZoom.com, Inc. trades at a P/E of 80.9 (forward 8.0). TrendMatrix value score: 6.8/10. Verdict: Sell.

What do analysts say about LZ?

18 analysts cover LZ with a consensus score of 3.8/5. Average price target: $9.

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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