LegalZoom (LZ) Moves 6.8% Higher: Will This Strength Last?

Company Overview - LegalZoom (LZ) shares increased by 6.8% to close at $9, with a notable trading volume, and have gained 7.8% over the past four weeks [1] - An analyst at J.P. Morgan upgraded LegalZoom's stock rating from Underweight to Overweight and raised the price target from $8.00 to $9.00 [1][2] Financial Performance - The analyst's upgrade is supported by improved business formation data, indicating a reversal from declines in 2024 [2] - LegalZoom is expected to provide 2025 adjusted EBITDA guidance that exceeds analysts' estimates by at least 5% [2] - The anticipated adjusted EBITDA for 2025 is projected to be $15 million higher year-over-year, compared to a consensus estimate of an $8 million increase [3] Earnings Expectations - LegalZoom is expected to report quarterly earnings of $0.17 per share, reflecting a year-over-year increase of 30.8% [4] - Revenue for the upcoming quarter is projected at $160.52 million, a 1.2% increase from the previous year [4] - The consensus EPS estimate for the quarter has been revised 13.3% higher over the last 30 days, indicating a positive trend in earnings estimate revisions [5] Industry Context - LegalZoom operates within the Zacks Industrial Services industry, where W.W. Grainger (GWW) also resides, having closed 1% higher at $1,132.42 [5] - GWW's consensus EPS estimate has changed by -0.7% over the past month, with a year-over-year change of 17.1% [6]