A Closer Look at 4 Analyst Recommendations For LegalZoom.com

In the last three months, 4 analysts have published ratings on LegalZoom.com LZ, offering a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for LegalZoom.com, presenting an average target of $9.25, a high estimate of $14.00, and a low estimate of $6.00. This current average has decreased by 32.33% from the previous average price target of $13.67.

Interpreting Analyst Ratings: A Closer Look

The perception of LegalZoom.com by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to LegalZoom.com. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of LegalZoom.com compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for LegalZoom.com's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of LegalZoom.com's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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Delving into LegalZoom.com's Background

LegalZoom.com Inc is an online provider of services that meet the legal needs of small businesses and consumers in the United States. The company also offers services that include ongoing compliance and tax advice and filings, business licenses, accounting, virtual mailbox and e-signature solutions, trademark filings, and estate plans.

LegalZoom.com's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: LegalZoom.com's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 4.99%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: LegalZoom.com's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 2.72%, the company may face hurdles in effective cost management.

Return on Equity (ROE): LegalZoom.com's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.82%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): LegalZoom.com's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.05%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: LegalZoom.com's debt-to-equity ratio is below the industry average at 0.05, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.