The average of price targets set by Wall Street analysts indicates a potential upside of 26.2% in Travelzoo (TZOO). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Travelzoo (TZOO) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Does Travelzoo (TZOO) have what it takes to be a top stock pick for momentum investors? Let's find out.
Travelzoo (TZOO) is well positioned to outperform the market, as it exhibits above-average growth in financials.
The average of price targets set by Wall Street analysts indicates a potential upside of 42.8% in Travelzoo (TZOO). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Travelzoo's revenue and member count declined YoY, with traffic and interest also down, raising concerns about future growth and customer appeal. The company plans to shift to a fee-based model in 2025, creating uncertainty about user retention and advertising revenue. Despite positive cash flows and share buybacks, insider selling raises doubts about confidence in the company's future.
Travelzoo (NASDAQ:TZOO ) Q3 2024 Earnings Conference Call October 23, 2024 11:00 AM ET Company Participants Jeff Hoffman - Finance Controller for North America Holger Bartel - Global CEO Arveena Ahluwalia - Global Director, Premium Membership Christina Ciocca - Corporate Secretary and Chair Conference Call Participants Theodore O'Neill - Litchfield Hills Research Michael Kupinski - NOBLE Capital Markets Steve Silver - Argus Research Ed Woo - Ascendiant Capital Patrick Sholl - Barrington Research Operator Good morning, and welcome to the Travelzoo Third Quarter 2024 Earnings Call. Today's conference is being recorded.
Travelzoo (TZOO) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.16 per share a year ago.
TZOO presents a mixed investment case ahead of third-quarter earnings, combining attractive valuation and notable execution risks.
Travelzoo's plan to monetize 30 million members by 2025 could redefine its market position. Investors should adopt a wait-and-see approach.
Travelzoo's switch to a $40 annual membership fee could stabilize revenue but risks losing loyal members. The company is actively repurchasing shares, reducing the share float, and showing strong revenue growth projections of 15% next year and 32% the following year. Despite potential risks with the new subscription model, management sees desire in travel value, which the company offers at a low annual fee.
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