Why LegalZoom (LZ) Might be Well Poised for a Surge

LegalZoom (LZ) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this online platform for legal services reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.For LegalZoom, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.Current-Quarter Estimate RevisionsThe company is expected to earn $0.17 per share for the current quarter, which represents a year-over-year change of +30.77%.Over the last 30 days, one estimate has moved higher for LegalZoom compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 13.33%.Current-Year Estimate RevisionsFor the full year, the company is expected to earn $0.53 per share, representing a year-over-year change of +29.27%.The revisions trend for the current year also appears quite promising for LegalZoom, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 6.57%.Favorable Zacks RankThanks to promising estimate revisions, LegalZoom currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineWhile strong estimate revisions for LegalZoom have attracted decent investments and pushed the stock 5.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LegalZoom.com, Inc. (LZ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks