Travelzoo (NASDAQ:TZOO) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Travelzoo from “buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $14.83.
• Travelzoo’s latest quarterly results missed expectations, posting a $0.21 loss per share versus an expected $0.14 profit and revenue of $23.21 million versus the $25 million consensus.
• Analysts sharply cut their 2026 and 2027 earnings forecasts, increasing uncertainty about near-term profitability; institutional investors nonetheless own 27.39% of the company.

Travelzoo (NASDAQ:TZOO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other equities research analysts also recently issued reports on the company. Barrington Research boosted their price target on Travelzoo from $8.00 to $12.00 and gave the company an "outperform" rating in a research report on Friday, April 24th. Zacks Research upgraded Travelzoo from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 23rd. UBS Group set a $9.50 target price on Travelzoo in a research report on Wednesday. Weiss Ratings upgraded Travelzoo from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, May 19th. Finally, Ascendiant Capital Markets boosted their price target on Travelzoo from $22.00 to $23.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.83.

Travelzoo Stock Performance

TZOO opened at $7.23 on Friday. Travelzoo has a 1 year low of $4.72 and a 1 year high of $12.39. The company's 50 day simple moving average is $10.46 and its 200 day simple moving average is $8.09. The stock has a market capitalization of $74.32 million, a PE ratio of 241.00 and a beta of 1.28.

Travelzoo (NASDAQ:TZOO - Get Free Report) last issued its quarterly earnings results 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). Travelzoo had a negative return on equity of 10.40% and a net margin of 0.51%.The company had revenue of $23.21 million for the quarter, compared to analyst estimates of $25.00 million. During the same period last year, the company posted $0.12 EPS. As a group, sell-side analysts expect that Travelzoo will post 0.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Travelzoo

A number of institutional investors have recently added to or reduced their stakes in TZOO. Cubist Systematic Strategies LLC acquired a new stake in shares of Travelzoo during the first quarter valued at about $120,000. Millennium Management LLC lifted its stake in shares of Travelzoo by 299.8% in the first quarter. Millennium Management LLC now owns 309,097 shares of the information services provider's stock worth $4,213,000 after acquiring an additional 231,790 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of Travelzoo by 60.4% in the first quarter. Goldman Sachs Group Inc. now owns 45,528 shares of the information services provider's stock worth $621,000 after acquiring an additional 17,146 shares in the last quarter. Jane Street Group LLC boosted its holdings in Travelzoo by 63.6% in the first quarter. Jane Street Group LLC now owns 28,779 shares of the information services provider's stock valued at $392,000 after purchasing an additional 11,189 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in Travelzoo by 113.8% in the second quarter. Geode Capital Management LLC now owns 157,267 shares of the information services provider's stock valued at $2,002,000 after purchasing an additional 83,719 shares during the last quarter. Institutional investors and hedge funds own 27.39% of the company's stock.

Key Headlines Impacting 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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