(LZ) LegalZoom.com - Ratings and Ratios

LegalZoom.com, Inc. is a pioneering online platform that provides a comprehensive suite of legal, compliance, and business management solutions for small businesses and individuals in the United States. By leveraging its cutting-edge technology, the company streamlines the process of forming and managing businesses, protecting intellectual property, and planning for the future. Its diverse range of services includes business formation, intellectual property protection, consumer and estate planning, and subscription-based services such as registered agent and compliance support.

The companys business model is built around providing accessible and affordable legal solutions to individuals and small businesses, which is reflected in its diverse product offerings. These include business formation products, such as LLC and corporation formations, as well as intellectual property services like trademark and patent applications. Additionally, LegalZoom offers a range of consumer and estate planning services, including wills, trusts, and powers of attorney. The companys subscription services provide ongoing support and compliance assistance, helping businesses navigate the complexities of regulatory requirements.

From a technical analysis perspective, the stocks recent price action suggests a potential reversal, with the short-term moving average (SMA20) at $9.27 and the long-term moving average (SMA200) at $8.05. The current price of $8.74 is closer to the SMA50 at $8.30, indicating a possible support level. The Average True Range (ATR) of 0.34, or 3.91%, suggests moderate volatility. Considering the 52-week high of $10.26 and low of $5.57, the stock is currently trading near the lower end of its recent range.

Combining the technical analysis with fundamental data, we can forecast a potential price target for LZ. With a market capitalization of $1.694 billion and a forward P/E ratio of 13.18, the stock appears to be undervalued relative to its growth prospects. The companys return on equity (RoE) of 30.24% indicates strong profitability. Assuming the company continues to grow its revenue and maintain its profitability, we can expect the stock price to appreciate. Based on the technical and fundamental analysis, a potential price target for LZ could be around $11.50, representing a 32% increase from the current price.