Is LegalZoom Stock a Good Investment?

LegalZoom Investment Advice

  LZ
To provide specific investment advice or recommendations on LegalZoom stock, we recommend investors consider the following general factors when evaluating LegalZoom. This will help you to make an informed decision on whether to include LegalZoom in one of your diversified portfolios:
  • Examine LegalZoom's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research LegalZoom's leadership team and their track record. Good management can help LegalZoom navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Environmental & Facilities Services space and any emerging trends that could impact LegalZoom's business and its evolving consumer preferences.
  • Compare LegalZoom's performance and market position to its competitors. Analyze how LegalZoom is positioned in terms of product offerings, innovation, and market share.
  • Check if LegalZoom pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about LegalZoom's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in LegalZoom stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if LegalZoom is a good investment.
 
Sell
 
Buy
Strong Hold
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.

Market Performance

ModestDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Reporting Quality (M-Score)

UnavailableDetails

Examine LegalZoom Stock

Researching LegalZoom's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% 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.
To determine if LegalZoom is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding LegalZoom's research are outlined below:
Over 87.0% of the company shares are owned by institutional investors
Latest headline from news.google.com: LegalZoom.com, Inc. Position Increased by Allspring Global Investments Holdings LLC - Defense World

LegalZoom Quarterly Liabilities And Stockholders Equity

468.94 Million

LegalZoom uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in LegalZoom. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to LegalZoom's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
22nd of February 2024
Upcoming Quarterly Report
View
14th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
22nd of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact LegalZoom's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises LegalZoom's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2023-05-09
2023-03-310.060.070.0116 
2022-11-10
2022-09-300.040.050.0125 
2021-08-12
2021-06-300.020.030.0150 
2021-11-10
2021-09-300.030.01-0.0266 
2024-02-22
2023-12-310.10.130.0330 
2023-11-07
2023-09-300.090.120.0333 
2023-02-23
2022-12-310.070.10.0342 
2022-05-12
2022-03-31-0.02-0.05-0.03150 

Know LegalZoom's Top 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 originate 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's market capitalization trends

The company currently falls under 'Mid-Cap' category with a market capitalization of 2.26 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate LegalZoom's market, we take the total number of its shares issued and multiply it by LegalZoom's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

5.96 Billion

LegalZoom's profitablity analysis

LegalZoom's profitability indicators refer to fundamental financial ratios that showcase LegalZoom's ability to generate income relative to its revenue or operating costs. If, let's say, LegalZoom is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, LegalZoom's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of LegalZoom's profitability requires more research than a typical breakdown of LegalZoom's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for Next Year
Return On Tangible Assets 0.04  0.04 
Return On Capital Employed 0.12  0.12 
Return On Assets 0.03  0.03 
Return On Equity 0.08  0.09 
The company has Net Profit Margin (PM) of 0.02 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.06 %, which signifies that for every $100 of sales, it has a net operating income of $0.06.
Determining LegalZoom's profitability involves analyzing its financial statements and using various financial metrics to determine if LegalZoom is a good buy. For example, gross profit margin measures LegalZoom's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of LegalZoom's profitability and make more informed investment decisions.
The data published in LegalZoom's official financial statements usually reflect LegalZoom's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of LegalZoom. For example, before you start analyzing numbers published by LegalZoom accountants, it's critical to develop an understanding of what LegalZoom's liquidity, profitability, and earnings quality are in the context of the Commercial Services & Supplies space in which it operates.
Please note, the presentation of LegalZoom's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, LegalZoom's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in LegalZoom's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of LegalZoom. Please utilize our Beneish M Score to check the likelihood of LegalZoom's management manipulating its earnings.

Evaluate LegalZoom's management efficiency

LegalZoom has Return on Asset (ROA) of 0.0365 % which means that for every $100 of assets, it generated a profit of $0.0365. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.0897 %, which means that it produced $0.0897 on every 100 dollars invested by current stockholders. LegalZoom's management efficiency ratios could be used to measure how well LegalZoom manages its routine affairs as well as how well it operates its assets and liabilities. At this time, LegalZoom's Return On Tangible Assets are fairly stable compared to the past year. Return On Assets is likely to rise to 0.03 in 2024, whereas Return On Capital Employed is likely to drop 0.12 in 2024. At this time, LegalZoom's Net Tangible Assets are fairly stable compared to the past year. Non Currrent Assets Other is likely to rise to about 15 M in 2024, whereas Total Assets are likely to drop slightly above 290.2 M in 2024.
Last ReportedProjected for Next Year
Book Value Per Share 0.89  0.93 
Net Current Asset Value 0.00  0.00 
Tangible Asset Value 0.00  0.00 
Tangible Book Value Per Share 0.48  0.51 
Enterprise Value Over EBITDA 36.55  38.37 
Price Book Value Ratio 12.75  13.39 
Enterprise Value Multiple 36.55  38.37 
Price Fair Value 12.75  13.39 
Enterprise ValueB8.7 B
The analysis of LegalZoom's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze LegalZoom's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of LegalZoom Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta
1.234

Basic technical analysis of LegalZoom Stock

As of the 18th of April 2024, LegalZoom secures the Mean Deviation of 1.78, risk adjusted performance of 0.0543, and Downside Deviation of 2.15. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of LegalZoom, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen technical drivers for LegalZoom, which can be compared to its peers in the industry. Please verify LegalZoom semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to decide if LegalZoom is priced some-what accurately, providing market reflects its recent price of 12.01 per share. Given that LegalZoom has jensen alpha of 0.096, we recommend you to check LegalZoom's last-minute market performance to make sure the company can sustain itself at a future point.

LegalZoom's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific LegalZoom insiders, such as employees or executives, is commonly permitted as long as it does not rely on LegalZoom's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases LegalZoom insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Understand LegalZoom's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing LegalZoom's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider LegalZoom's intraday indicators

LegalZoom intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of LegalZoom stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

LegalZoom Corporate Filings

F4
18th of March 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
10K
29th of February 2024
Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance
ViewVerify
8K
22nd of February 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
13A
14th of February 2024
An amended filing to the original Schedule 13G
ViewVerify
LegalZoom time-series forecasting models is one of many LegalZoom's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary LegalZoom's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

LegalZoom Stock media impact

Far too much social signal, news, headlines, and media speculation about LegalZoom that are available to investors today. That information is available publicly through LegalZoom media outlets and privately through word of mouth or via LegalZoom internal channels. However, regardless of the origin, that massive amount of LegalZoom data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of LegalZoom news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of LegalZoom relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to LegalZoom's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive LegalZoom alpha.

LegalZoom Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards LegalZoom can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

LegalZoom Historical Investor Sentiment

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.
LegalZoom's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for LegalZoom and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average LegalZoom news discussions. The higher the estimate score, the more favorable the investor's outlook on LegalZoom.

Be your own money manager

Our tools can tell you how much better you can do entering a position in LegalZoom without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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LegalZoom Corporate Management

Elected by the shareholders, the LegalZoom's board of directors comprises two types of representatives: LegalZoom inside directors who are chosen from within the company, and outside directors, selected externally and held independent of LegalZoom. The board's role is to monitor LegalZoom's management team and ensure that shareholders' interests are well served. LegalZoom's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, LegalZoom's outside directors are responsible for providing unbiased perspectives on the board's policies.

How to buy LegalZoom Stock?

To provide specific investment advice or recommendations on LegalZoom stock, we recommend investors consider the following general factors when evaluating LegalZoom. This will help you to make an informed decision on whether to include LegalZoom in one of your diversified portfolios:
  • Examine LegalZoom's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research LegalZoom's leadership team and their track record. Good management can help LegalZoom navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Environmental & Facilities Services space and any emerging trends that could impact LegalZoom's business and its evolving consumer preferences.
  • Compare LegalZoom's performance and market position to its competitors. Analyze how LegalZoom is positioned in terms of product offerings, innovation, and market share.
  • Check if LegalZoom pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about LegalZoom's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in LegalZoom stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if LegalZoom is a good investment.

Already Invested in LegalZoom?

The danger of trading LegalZoom is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of LegalZoom is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than LegalZoom. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile LegalZoom is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in 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.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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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.
In summary, please note that there is a difference between LegalZoom's value and its price, as these two are different measures arrived at by various 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.