Legalzoom Stock Price Prediction

LZ Stock  USD 8.54  0.05  0.58%   
The relative strength index (RSI) of LegalZoom's share price is below 30 at this time. This indicates that the stock is becoming oversold or undervalued. The main point of the Relative Strength Index (RSI) is to track how fast people are buying or selling LegalZoom, making its price go up or down.

Oversold Vs Overbought

28

 
Oversold
 
Overbought
LegalZoom stock price prediction is an act of determining the future value of LegalZoom shares using few different conventional methods such as EPS estimation, analyst consensus, or fundamental intrinsic valuation. The successful prediction of LegalZoom's future price could yield a significant profit. Please, note that this module is not intended to be used solely to calculate an intrinsic value of LegalZoom and does not consider all of the tangible or intangible factors available from LegalZoom's fundamental data. We analyze noise-free headlines and recent hype associated with LegalZoom, which may create opportunities for some arbitrage if properly timed.
Below are the key fundamental drivers impacting LegalZoom's stock price prediction:
Quarterly Earnings Growth
3.327
EPS Estimate Next Quarter
0.13
EPS Estimate Current Year
0.51
EPS Estimate Next Year
0.62
Wall Street Target Price
13.25
It is a matter of debate whether stock price prediction based on information in financial news can generate a strong buy or sell signal. We use our internally-built news screening methodology to estimate the value of LegalZoom based on different types of headlines from major news networks to social media. The LegalZoom stock price prediction module provides an analysis of price elasticity to changes in media outlook on LegalZoom over a specific investment horizon. Using LegalZoom hype-based prediction, you can estimate the value of LegalZoom from the perspective of LegalZoom response to recently generated media hype and the effects of current headlines on its competitors. We also analyze overall investor sentiment towards LegalZoom using LegalZoom's stock options and short interest. It helps to benchmark the overall future attitude of investors towards LegalZoom using crowd psychology based on the activity and movement of LegalZoom's stock price.

LegalZoom Short Interest

A significant increase or decrease in LegalZoom's short interest from the previous month could be a good indicator of investor sentiment towards LegalZoom. Short interest can provide insight into the potential direction of LegalZoom stock and how bullish or bearish investors feel about the market overall. An investor who is long LegalZoom may also wish to track short interest. As short interest increases, investors should be becoming more worried about LegalZoom and may potentially protect profits, hedge LegalZoom with its derivative instruments, or be ready for some potential downside.
200 Day MA
11.2174
Short Percent
0.0376
Short Ratio
5.19
Shares Short Prior Month
5.3 M
50 Day MA
11.7462

LegalZoom Hype to Price Pattern

Investor biases related to LegalZoom's public news can be used to forecast risks associated with an investment in LegalZoom. The trend in average sentiment can be used to explain how an investor holding LegalZoom can time the market purely based on public headlines and social activities around LegalZoom. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. The correlation of LegalZoom's market sentiment to its price can help taders to make decisions based on the overall investors consensus about LegalZoom.

LegalZoom Implied Volatility

    
  42.1  
LegalZoom's implied volatility exposes the market's sentiment of LegalZoom stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if LegalZoom's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that LegalZoom stock will not fluctuate a lot when LegalZoom's options are near their expiration.
This module is based on analyzing investor sentiment around taking a position in LegalZoom. This speculative approach is based exclusively on the idea that markets are driven by emotions such as investor fear and greed. The fear of missing out, i.e., FOMO, can cause potential investors in LegalZoom to buy its stock at a price that has no basis in reality. In that case, they are not buying LegalZoom because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. On the other hand, investors will often sell stocks at prices well below their value during bear markets because they need to stop feeling the pain of losing money.

LegalZoom after-hype prediction price

    
  USD 8.5  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.

Prediction based on Rule 16 of the current LegalZoom contract

Based on the Rule 16, the options market is currently suggesting that LegalZoom will have an average daily up or down price movement of about 2.63% per day over the life of the 2024-06-21 option contract. With LegalZoom trading at USD 8.54, that is roughly USD 0.22 . If you think that the market is fully incorporating LegalZoom's daily price movement you should consider acquiring LegalZoom options at the current volatility level of 42.1%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Check out LegalZoom Basic Forecasting Models to cross-verify your projections.
For more information on how to buy LegalZoom Stock please use our How to Invest in LegalZoom guide.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of LegalZoom's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Intrinsic
Valuation
LowRealHigh
6.8110.4013.99
Details
Naive
Forecast
LowNextHigh
5.118.7012.29
Details
8 Analysts
Consensus
LowTargetHigh
13.3014.6116.22
Details
Earnings
Estimates (0)
LowProjected EPSHigh
0.080.100.12
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as LegalZoom. Your research has to be compared to or analyzed against LegalZoom's peers to derive any actionable benefits. When done correctly, LegalZoom's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in LegalZoom.

LegalZoom After-Hype Price Prediction Density Analysis

As far as predicting the price of LegalZoom at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in LegalZoom or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of LegalZoom, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

LegalZoom Estimiated After-Hype Price Volatility

In the context of predicting LegalZoom's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on LegalZoom's historical news coverage. LegalZoom's after-hype downside and upside margins for the prediction period are 4.91 and 12.09, respectively. We have considered LegalZoom's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
8.54
8.50
After-hype Price
12.09
Upside
LegalZoom is somewhat reliable at this time. Analysis and calculation of next after-hype price of LegalZoom is based on 3 months time horizon.

LegalZoom Stock Price Prediction Analysis

Have you ever been surprised when a price of a Company 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. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with LegalZoom, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.41 
3.59
  0.09 
  0.04 
9 Events / Month
4 Events / Month
In about 9 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
8.54
8.50
1.05 
1,710  
Notes

LegalZoom Hype Timeline

As of May 28, 2024 LegalZoom is listed for 8.54. The entity has historical hype elasticity of 0.09, and average elasticity to hype of competition of -0.04. LegalZoom is forecasted to decline in value after the next headline, with the price expected to drop to 8.5. The average volatility of media hype impact on the company price is over 100%. The price decline on the next news is expected to be -1.05%, whereas the daily expected return is now at -0.41%. The volatility of related hype on LegalZoom is about 3695.59%, with the expected price after the next announcement by competition of 8.50. About 88.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.55. LegalZoom had not issued any dividends in recent years. Allowing for the 90-day total investment horizon the next forecasted press release will be in about 9 days.
Check out LegalZoom Basic Forecasting Models to cross-verify your projections.
For more information on how to buy LegalZoom Stock please use our How to Invest in LegalZoom guide.

LegalZoom Related Hype Analysis

Having access to credible news sources related to LegalZoom's direct competition is more important than ever and may enhance your ability to predict LegalZoom's future price movements. Getting to know how LegalZoom's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how LegalZoom may potentially react to the hype associated with one of its peers.

LegalZoom Additional Predictive Modules

Most predictive techniques to examine LegalZoom price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for LegalZoom using various technical indicators. When you analyze LegalZoom charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.

About LegalZoom Predictive Indicators

The successful prediction of LegalZoom stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as LegalZoom, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of LegalZoom based on analysis of LegalZoom hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to LegalZoom's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to LegalZoom's related companies.
 2021 2023 2024 (projected)
Dividend Yield3.5E-54.0E-57.0E-5
Price To Sales Ratio5.543.263.09

Story Coverage note for LegalZoom

The number of cover stories for LegalZoom depends on current market conditions and LegalZoom's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that LegalZoom is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about LegalZoom's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

LegalZoom Short Properties

LegalZoom's future price predictability will typically decrease when LegalZoom's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of LegalZoom often depends not only on the future outlook of the potential LegalZoom's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. LegalZoom's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding194.4 M
Cash And Short Term Investments225.7 M
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 Basic Forecasting Models to cross-verify your projections.
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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
0.1
Revenue Per Share
3.525
Quarterly Revenue Growth
0.05
Return On Assets
0.043
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.