LZ Stock Analysis: Buy, Sell, or Hold?
LZ - LegalZoom.com, Inc. Common Stock
$5.93
0.04 (0.77%)
▲
5d:
-3.34%
30d:
-6.55%
90d:
-13.76%
BUY
HIGH Confidence
Analysis Updated: May 14, 2026 12:00 AM ET
Earnings: May 06, 2026
0d
Smart Money Accumulation
LZ is down 5.9% this week, but smart money is accumulating calls. Top strike: $6 2026-06-18 with 9,295 OI. Call ratio: 90% View Scanner →
Strength: 6.9/10
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: LZ trading at deep discount. Market pricing in -11.9% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: LZ trading at deep discount. Market pricing in -11.9% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$12.48
Based on 7.9% avg growth
INTRINSIC VALUE TODAY
$7.75
23.5% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 10.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: LZ is currently trading at $5.92, which is considered slightly low relative to its 30-day fair value range of $5.93 to $6.55. From a valuation perspective, the stock is trading at a discount (Forward PE: 7.1) compared to its historical average (10.4). Remarkably, the market is currently pricing in an annual earnings decline of 11.9% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, LZ is in a strong downtrend. Immediate support is located at $5.60, while resistance sits at $6.93.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $8.29 (+40.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, LZ is in a strong downtrend. Immediate support is located at $5.60, while resistance sits at $6.93.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $8.29 (+40.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$5.93 -
$6.55
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 40.9% below Wall St target ($8.29)
Trading Range Analysis
30-Day Trading Range
$5.93 -
$6.55
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$5.60
Resistance Level
$6.93
Current Trend
Strong Downtrend
Technical data as of
May 15, 2026
Fundamental Context
Forward P/E (Next Year Est.)
7.14
Wall Street Target
$8.29
(+40.9%)
Revenue Growth (YoY)
12.9%
Earnings Growth (YoY)
-78.2%
Profit Margin
1.5%
Valuation Discount vs History
-11.9% cheaper
PE vs Historical
7.1 vs 10.4
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-11.9%
(market-implied from PE analysis)
1-Year Target
$5.29
(-10%)
2-Year Target
$4.76
(-19%)
3-Year Target
$4.29
(-27%)
3-Yr Target (if PE normalizes)
(PE: 7→10)
$6.24
(+6%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.0, Growth: 11.7%)
$25.29
(+330%)
Base:
(SPY PE: 7.1, Growth: 11.7%)
$8.19
(+39%)
Bear:
(PE: 6.1, Growth: 11.7%)
$6.96
(+18%)
📈
Valuation based on Current Earnings
Forward PE: 6.22 | Forward EPS (Implied): $0.94
Bull Case
$7.10
(+21%)
Analyst growth 15.0%, PE expands to 6.5
Base Case
$5.88
(0%)
Market implied 0.0%, PE stable at 6.2
Bear Case
$4.50
(-24%)
Severe decline -15.0%, PE contracts to 5.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 7.1 to 10.4
Stabilization Target:
$8.57
(+45.7%)
PE Expansion Potential:
+45.7%
Share & Embed Analysis
Last updated: May 15, 2026 12:08 PM ET
Data refreshes hourly during market hours. Next update: 1:08 PM
Data refreshes hourly during market hours. Next update: 1:08 PM
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Technical Signals Check
Is LZ showing a specific setup today?
Insider Activity (6 Months)
0
Buys
4
Sells
Net
INSIDERS SELLING
Recent Transactions
Nicole Miller
SELL
23325 shares
2026-02-26
Noel Bertram Watson
SELL
15000 shares
2026-02-18
Nicole Miller
SELL
23506 shares
2025-11-18
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Advanced LZ Option Strategies
Professional options setups generated by AI based on today's LZ price and gamma walls.
