LZ Should I Buy
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LegalZoom.com Inc. (LZ) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock is oversold based on RSI, the technical indicators show a bearish trend, and the financial performance has been weak with declining net income and EPS. Furthermore, hedge funds are heavily selling, and there are no recent positive news catalysts or strong trading signals to support an immediate buy decision.
The stock is in a bearish trend with MACD negatively expanding, RSI indicating oversold conditions at 19.874, and moving averages showing a bearish alignment (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 6.846 and S2 at 6.212, suggesting further downside risk.
The U.S. Census data shows strong business formation applications, which could positively impact LegalZoom's long-term growth. Analysts at JPMorgan have an Overweight rating, citing this as a positive read-through for the company.
shows declining net income (-59.20% YoY) and EPS (-66.67% YoY). No recent news or congressional trading data provides additional support.
In 2025/Q3, revenue increased by 12.79% YoY to $190.16M, but net income dropped significantly by 59.20% YoY to $4.51M. EPS also fell by 66.67% YoY to $0.02, and gross margin slightly declined to 67.25%. Overall, the financial performance shows revenue growth but significant profitability challenges.
JPMorgan has an Overweight rating on the stock, citing strong business formation data as a positive catalyst. However, Citi recently lowered its price target from $12 to $10.50, maintaining a Neutral rating, reflecting mixed sentiment among analysts.
