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LegalZoom (LZ) Surges 5.0%: Is This an Indication of Further Gains?
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LegalZoom (LZ - Free Report) shares ended the last trading session 5% higher at $14.39. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.9% gain over the past four weeks.
Recently an analyst at JMP Securities has retained the rating on the LegalZoom stock at Market Outperform and set a target price of $15. This led to the 5% jump in its share price.
The company is expected to report year-over-year improvement in both revenues and earnings when its reports its second-quarter 2023 results next month. In the first quarter of 2023, LZ had reported a 15% increase in subscription revenues, compared to the last year’s quarter.
The improvement was attributed to the roll-out of its new line-up as well as the revamp of its marketing strategies. Total revenues were $165.9 million for the quarter, up 7% year over year.
Adjusted EBITDA in the first quarter of 2023 was $21.9 million, which marked a solid improvement from $2.3 million in the first quarter of 2022. Adjusted EBITDA margin was 13% in the first quarter of 2023, compared with 1% in the last year quarter.
For the second quarter, the company expects adjusted EBITDA to be between $27 million and $29 million.
This online platform for legal services is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $167.05 million, up 1.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For LegalZoom, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LZ going forward to see if this recent jump can turn into more strength down the road.
LegalZoom belongs to the Zacks Industrial Services industry. Another stock from the same industry, Danimer Scientific, Inc. (DNMR - Free Report) , closed the last trading session 2.8% higher at $2.93. Over the past month, DNMR has returned -0.7%.
Danimer Scientific, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.36. Compared to the company's year-ago EPS, this represents a change of -20%. Danimer Scientific, Inc. currently boasts a Zacks Rank of #3 (Hold).
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LegalZoom (LZ) Surges 5.0%: Is This an Indication of Further Gains?
LegalZoom (LZ - Free Report) shares ended the last trading session 5% higher at $14.39. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.9% gain over the past four weeks.
Recently an analyst at JMP Securities has retained the rating on the LegalZoom stock at Market Outperform and set a target price of $15. This led to the 5% jump in its share price.
The company is expected to report year-over-year improvement in both revenues and earnings when its reports its second-quarter 2023 results next month. In the first quarter of 2023, LZ had reported a 15% increase in subscription revenues, compared to the last year’s quarter.
The improvement was attributed to the roll-out of its new line-up as well as the revamp of its marketing strategies. Total revenues were $165.9 million for the quarter, up 7% year over year.
Adjusted EBITDA in the first quarter of 2023 was $21.9 million, which marked a solid improvement from $2.3 million in the first quarter of 2022. Adjusted EBITDA margin was 13% in the first quarter of 2023, compared with 1% in the last year quarter.
For the second quarter, the company expects adjusted EBITDA to be between $27 million and $29 million.
This online platform for legal services is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $167.05 million, up 1.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For LegalZoom, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LZ going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
LegalZoom belongs to the Zacks Industrial Services industry. Another stock from the same industry, Danimer Scientific, Inc. (DNMR - Free Report) , closed the last trading session 2.8% higher at $2.93. Over the past month, DNMR has returned -0.7%.
Danimer Scientific, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.36. Compared to the company's year-ago EPS, this represents a change of -20%. Danimer Scientific, Inc. currently boasts a Zacks Rank of #3 (Hold).