Legalzoom Stock Buy Hold or Sell Recommendation

LZ Stock  USD 12.69  0.27  2.08%   
Allowing for the 90-day total investment horizon and your complete indifference towards market risk, our recommendation regarding LegalZoom is 'Strong Buy'. Macroaxis provides LegalZoom buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LZ positions. The advice algorithm takes into account all of LegalZoom's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting LegalZoom's buy or sell advice are summarized below:
Real Value
13.4
Target Price
14.61
Hype Value
12.72
Market Value
12.69
Naive Value
13.33
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell LegalZoom given historical horizon and risk tolerance towards LegalZoom. When Macroaxis issues a 'buy' or 'sell' recommendation for LegalZoom, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out LegalZoom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy LegalZoom Stock please use our How to Invest in LegalZoom guide.
In addition, we conduct extensive research on individual companies such as LegalZoom and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards LegalZoom. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Execute LegalZoom Buy or Sell Advice

The LegalZoom recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on LegalZoom. Macroaxis does not own or have any residual interests in LegalZoom or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute LegalZoom's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell LegalZoomBuy LegalZoom
Strong Buy

Market Performance

OKDetails

Volatility

Not too volatileDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon LegalZoom has a Risk Adjusted Performance of 0.0751, Jensen Alpha of 0.1445, Total Risk Alpha of (0.01), Sortino Ratio of 0.097 and Treynor Ratio of 0.1422
Our investment recommendation tool can cross-verify current analyst consensus on LegalZoom and to analyze the entity potential to grow in the current economic cycle. To make sure LegalZoom is not overpriced, please verify all LegalZoom fundamentals, including its price to earning, book value per share, current asset, as well as the relationship between the net income and number of employees . Given that LegalZoom has a price to earning of 9.82 X, we recommend you to check LegalZoom market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

LegalZoom Trading Alerts and Improvement Suggestions

LegalZoom has a strong financial position based on the latest SEC filings
Over 87.0% of the company shares are owned by institutional investors
Latest headline from finance.yahoo.com: Online Marketplace Stocks Q4 In Review Teladoc Vs Peers

LegalZoom Returns Distribution Density

The distribution of LegalZoom's historical returns is an attempt to chart the uncertainty of LegalZoom's future price movements. The chart of the probability distribution of LegalZoom daily returns describes the distribution of returns around its average expected value. We use LegalZoom price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of LegalZoom returns is essential to provide solid investment advice for LegalZoom.
Mean Return
0.29
Value At Risk
-3.01
Potential Upside
3.13
Standard Deviation
2.64
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of LegalZoom historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

LegalZoom Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as LegalZoom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading LegalZoom backward and forwards among themselves. LegalZoom's institutional investor refers to the entity that pools money to purchase LegalZoom's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Franklin Resources Inc2023-12-31
M
Westwood Holdings Group Inc2023-12-31
M
Geode Capital Management, Llc2023-12-31
2.6 M
Ararat Capital Management, Lp2023-12-31
2.5 M
State Street Corporation2023-12-31
2.4 M
Renaissance Technologies Corp2023-12-31
2.4 M
Arrowmark Colorado Holdings, Llc (arrowmark Partners)2023-12-31
2.3 M
Fmr Inc2023-12-31
2.2 M
Cowbird Capital Lp2023-09-30
2.2 M
Francisco Partners Management Lp2023-12-31
28.6 M
Technology Crossover Management Ix, Ltd.2023-12-31
16.4 M
Note, although LegalZoom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

LegalZoom Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to LegalZoom or Commercial Services & Supplies sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that LegalZoom's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a LegalZoom stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.14
β
Beta against NYSE Composite1.95
σ
Overall volatility
2.68
Ir
Information ratio 0.08

LegalZoom Volatility Alert

LegalZoom currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.14. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure LegalZoom's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact LegalZoom's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

LegalZoom Fundamentals Vs Peers

Comparing LegalZoom's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze LegalZoom's direct or indirect competition across all of the common fundamentals between LegalZoom and the related equities. This way, we can detect undervalued stocks with similar characteristics as LegalZoom or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of LegalZoom's fundamental indicators could also be used in its relative valuation, which is a method of valuing LegalZoom by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare LegalZoom to competition
FundamentalsLegalZoomPeer Average
Return On Equity0.0897-0.31
Return On Asset0.0365-0.14
Profit Margin0.02 %(1.27) %
Operating Margin0.06 %(5.51) %
Current Valuation2.17 B16.62 B
Shares Outstanding187.93 M571.82 M
Shares Owned By Insiders4.18 %10.09 %
Shares Owned By Institutions87.22 %39.21 %
Number Of Shares Shorted4.64 M4.71 M
Price To Earning9.82 X28.72 X
Price To Book14.13 X9.51 X
Price To Sales3.61 X11.42 X
Revenue660.73 M9.43 B
Gross Profit408.88 M27.38 B
EBITDA52.96 M3.9 B
Net Income13.95 M570.98 M
Cash And Equivalents211.81 M2.7 B
Cash Per Share1.10 X5.01 X
Total Debt9.05 M5.32 B
Debt To Equity0.07 %48.70 %
Current Ratio1.03 X2.16 X
Book Value Per Share0.90 X1.93 K
Cash Flow From Operations124.31 M971.22 M
Short Ratio3.56 X4.00 X
Earnings Per Share0.07 X3.12 X
Price To Earnings To Growth0.55 X4.89 X
Target Price13.92
Number Of Employees1.19 K18.84 K
Beta1.23-0.15
Market Capitalization2.38 B19.03 B
Total Asset468.94 M29.47 B
Retained Earnings(933.06 M)9.33 B
Working Capital11.38 M1.48 B
Note: Disposition of 9462 shares by Richard Preece of LegalZoom at 13.17 subject to Rule 16b-3 [view details]

LegalZoom Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as LegalZoom . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About LegalZoom Buy or Sell Advice

When is the right time to buy or sell LegalZoom? Buying financial instruments such as LegalZoom Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total1.1M11.3M9.0M8.6M
Total Assets431.0M405.4M468.9M290.2M

Use Investing Ideas to Build Portfolios

In addition to having LegalZoom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Realty Funds Thematic Idea Now

Realty Funds
Realty Funds Theme
Funds or Etfs investing in real estate backed instruments or issues backed by different types of commercial properties. The Realty Funds theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Realty Funds Theme or any other thematic opportunities.
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When determining whether LegalZoom offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LegalZoom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Legalzoom Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Legalzoom Stock:
Check out LegalZoom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy LegalZoom Stock please use our How to Invest in LegalZoom guide.
Note that the LegalZoom information on this page should be used as a complementary analysis to other LegalZoom's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Complementary Tools for LegalZoom Stock analysis

When running LegalZoom's price analysis, check to measure LegalZoom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LegalZoom is operating at the current time. Most of LegalZoom's value examination focuses on studying past and present price action to predict the probability of LegalZoom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LegalZoom's price. Additionally, you may evaluate how the addition of LegalZoom to your portfolios can decrease your overall portfolio volatility.
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Is LegalZoom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LegalZoom. If investors know LegalZoom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LegalZoom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
3.327
Earnings Share
0.07
Revenue Per Share
3.469
Quarterly Revenue Growth
0.082
Return On Assets
0.0365
The market value of LegalZoom is measured differently than its book value, which is the value of LegalZoom that is recorded on the company's balance sheet. Investors also form their own opinion of LegalZoom's value that differs from its market value or its book value, called intrinsic value, which is LegalZoom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LegalZoom's market value can be influenced by many factors that don't directly affect LegalZoom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LegalZoom's value and its price as these two are different measures arrived at by different means. Investors typically determine if LegalZoom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LegalZoom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.