Travelzoo (NASDAQ:TZOO) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Travelzoo to “strong sell” from “hold,” while overall analyst sentiment remains mixed with a consensus “hold” rating and $14.83 target price.
• Travelzoo’s latest quarter missed expectations, reporting a $0.21 loss per share versus the anticipated $0.14 profit and revenue of $23.21 million versus the $25 million estimate.
• Shares opened at $7.23, below their 50-day average of $10.46, and recent analysts have sharply reduced earnings forecasts, increasing concerns about the company’s near-term profitability.

Travelzoo (NASDAQ:TZOO - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other brokerages have also issued reports on TZOO. Weiss Ratings upgraded Travelzoo from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, May 19th. Ascendiant Capital Markets boosted their price target on Travelzoo from $22.00 to $23.00 and gave the company a "buy" rating in a research note on Friday, May 22nd. Wall Street Zen cut Travelzoo from a "buy" rating to a "hold" rating in a research note on Saturday. UBS Group set a $9.50 target price on Travelzoo in a report on Wednesday. Finally, Barrington Research upped their target price on Travelzoo from $8.00 to $12.00 and gave the company an "outperform" rating in a research report on Friday, April 24th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Travelzoo presently has a consensus rating of "Hold" and a consensus target price of $14.83.

Travelzoo Trading Up 1.4%

Shares of Travelzoo stock opened at $7.23 on Thursday. The firm's 50 day simple moving average is $10.46 and its two-hundred day simple moving average is $8.09. The firm has a market capitalization of $74.32 million, a price-to-earnings ratio of 241.00 and a beta of 1.28. Travelzoo has a 12-month low of $4.72 and a 12-month high of $12.39.

Travelzoo (NASDAQ:TZOO - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The information services provider reported ($0.21) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.35). The company had revenue of $23.21 million for the quarter, compared to analyst estimates of $25.00 million. Travelzoo had a negative return on equity of 10.40% and a net margin of 0.51%.During the same quarter in the previous year, the firm posted $0.12 earnings per share. On average, sell-side analysts predict that Travelzoo will post 0.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE grew its position in shares of Travelzoo by 1,242.5% during the 2nd quarter. Bank of America Corp DE now owns 2,148 shares of the information services provider's stock valued at $27,000 after acquiring an additional 1,988 shares during the period. Quarry LP acquired a new position in shares of Travelzoo during the 3rd quarter worth approximately $26,000. Wells Fargo & Company MN grew its stake in Travelzoo by 76.2% in the 4th quarter. Wells Fargo & Company MN now owns 6,787 shares of the information services provider's stock valued at $48,000 after acquiring an additional 2,935 shares during the period. JPMorgan Chase & Co. increased its holdings in Travelzoo by 42,900.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 3,010 shares of the information services provider's stock worth $38,000 after acquiring an additional 3,003 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in Travelzoo during the second quarter valued at $44,000. Hedge funds and other institutional investors own 27.39% of the company's stock.

Trending Headlines about Travelzoo

Here are the key news stories impacting Travelzoo this week:

• Negative Sentiment: Travelzoo’s second-quarter 2026 results missed expectations: the company reported a $0.21 per-share loss versus the $0.14 profit analysts expected, while revenue of $23.21 million fell short of the $25.00 million consensus. Earnings also deteriorated from $0.12 per share in the prior-year quarter. The weak report and cautious outlook contributed to a steep share-price decline. Travelzoo 2026 second-quarter earnings call transcript
• Negative Sentiment: Litchfield Hills Research substantially reduced its forecasts, moving its estimates to losses of $0.07 per share for the third quarter of 2026, $0.04 for the fourth quarter and $0.07 for full-year 2026, compared with prior estimates of profits. The firm also cut 2027 estimates, including full-year EPS from $0.56 to $0.33 and fourth-quarter EPS from $0.11 to $0.05.
• Negative Sentiment: Noble Financial made even steeper reductions, lowering its third-quarter 2026 EPS forecast from a $0.04 profit to a $0.17 loss, its fourth-quarter forecast from a $0.24 profit to a $0.13 loss, and its full-year 2026 estimate from $0.60 to a $0.26 loss.
• Neutral Sentiment: The analyst revisions are forecasts rather than company guidance, but they highlight increasing uncertainty around Travelzoo’s near-term profitability. The revised estimates are well below the current full-year consensus of $0.69 EPS, raising the risk of further estimate cuts.

Travelzoo Company Profile

Travelzoo NASDAQ: TZOO is a global internet media company specializing in publishing curated travel, entertainment and local deals to a subscriber base of millions. Through its website, mobile applications and weekly email newsletters, Travelzoo partners with airlines, hotels, cruise lines, tour operators and local merchants to promote time-sensitive offers at discounted rates. The company generates revenue primarily from media commissions, advertising arrangements and marketing services provided to its hotel and resort partners.

Founded in 1998, Travelzoo went public on the NASDAQ in 2003 under the ticker symbol TZOO.

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