LegalZoom carries a wide economic moat and exceptional cash generation, but a confirmed price downtrend, consecutive earnings misses, and heavy short-seller interest make this a story where the underlying business quality has not yet translated into positive price momentum or earnings execution.
Thesis pillars
- Exceptional Cash Generation Moat→Stable
- Cheap Forward Valuation→Stable
- Consecutive Earnings Misses→Stable
- +1 more pillar — see the Why tab for full reasoning
LegalZoom.com, Inc. (LZ) Stock Analysis
Recovery setup
Industrials · Specialty Business Services
Sell if holding. At $6.08, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2); Below 200-MA, MA slope -7.3%/30d (confirmed downtrend).
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
Sell if holding. At $6.08, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2); Below 200-MA, MA slope -7.3%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 64. Score 5.2/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 38d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-06-29Recent Developments — LegalZoom.com, Inc.
Latest news
- NEWS KTLA's Fashion Guy LZ shares Mother’s Day gift ideas - AOL.com — AOL.com neutral
- NEWS Investment Outlook Overview | LegalZoom.com Misses EPS Estimates By 6.7% - Trending Entry Points - Newser — Newser negative
- NEWS LegalZoom (LZ) Expected to Beat Earnings Estimates: Should You Buy? - Yahoo Finance — Yahoo Finance positive
- NEWS LegalZoom.com (LZ) to Release Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Small Cap Core Portfolio's LegalZoom.com Inc(LZ) Holding History - GuruFocus — GuruFocus neutral
Generated 2026-06-30T00:04:05Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $6.08, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2); Below 200-MA, MA slope -7.3%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 64. Prior stop was $5.68. Score 5.2/10, moderate confidence.
Take-profit target: $6.96 (+14.0% upside). Prior stop was $5.68. Stop-loss: $5.68.
Consecutive earnings misses (2); Below 200-MA, MA slope -7.3%/30d (confirmed downtrend).
LegalZoom.com, Inc. trades at a P/E of 101.2 (forward 7.4). TrendMatrix value score: 6.4/10. Verdict: Sell.
17 analysts cover LZ with a consensus score of 3.9/5. 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.