Travelzoo TZOO shares have skyrocketed 136.8% in the trailing 12-month period, outperforming the Zacks Retail and Wholesale sector’s appreciation of 31.2% and the Zacks Internet – Commerce industry’s return of 44.9%.

TZOO shares have also outperformed industry peers like Globale Online GLBE and Expedia Group EXPE, which have returned 47.6% and 28.5%, respectively, over the same time frame.

A global Internet media company and premier club for travel enthusiasts, Travelzoo has carved a niche for itself via its innovative portfolio of offerings. With more than 30 million members worldwide, Travelzoo delivers exclusive deals and travel experiences reviewed by its deal experts.

TZOO shares are benefiting from the implementation of a membership fee, which is expected to significantly boost top-line growth and profit in 2025. Legacy members, who comprise more than 95% of TZOO’s membership base, start contributing to this revenue stream from January 2025.

One Year Performance

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TZOO shares are currently trading above the 50-day and 200-day moving averages, indicating a bullish trend.

TZOO Trades Above 50-Day & 200-Day SMA

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Innovative Portfolio Aids TZOO’s Prospects

Travelzoo operates across multiple platforms, including its website, mobile apps and newsletters, to reach a highly engaged audience of travel enthusiasts. Its flagship product, the Top20 email newsletter, curates the best weekly travel deals.

TZOO’s Gateways and Local Deals listings allow members to purchase vouchers for premium experiences, such as luxury hotels, spas and fine dining.

TZOO’s Jack’s Fight Club, a subscription-based service offering exceptional airfare deals, further diversifies Travelzoo’s portfolio. With flexible subscription plans ranging from quarterly to annual, it caters to budget-conscious travelers seeking value.

Furthermore, with Travelzoo’s foray into the metaverse through Travelzoo META, members can gain access to unique virtual travel experiences and non-fungible tokens (NFTs), tapping into the growing demand for immersive digital interactions.

Rich Partnerships Bode Well for TZOO

Travelzoo benefits from a strong partner network of more than 5,000 travel partners, including Alaska Air Group ALK, KLM Royal Dutch Airlines, Fairmont Mayakoba, Holland America Line, Icelandair, Exoticca and Tourism Ireland. These partnerships allow Travelzoo to deliver exclusive offers on flights, cruises, hotels and curated local experiences to its affluent membership base.

Partnerships with brands, such as Fiji Airways, Gate 1 Travel, Stunning Tours and Vacation Express USA Corp, further broaden the variety of premium options available, ensuring members have access to both luxury as well as budget-friendly options across a wide range of travel experiences.

TZOO 2025 Earnings Estimates Remain Steady

The Zacks Consensus Estimate for TZOO’s 2025 earnings is currently pegged at $1.21 per share, unchanged over the past 60 days, and indicating a growth of 10.78% on a year-over-year basis.

The consensus mark for TZOO’s 2025 revenues is pegged at $97.66 million, indicating a growth of 14.56%.

TZOO beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 11.71%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

However, TZOO shares are not so cheap, as its Value Score of C indicates a stretched valuation.

In terms of the forward 12-month price/sales, TZOO is trading at 2.49X, higher than its median of 1.45X and the broader sector’s 1.55X, suggesting that the stock may be overvalued.

Price/Sales Ratio (F12M)

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TZOO Stock: Buy, Sell or Hold?

TZOO benefits from its strong brand, affluent membership base and innovative offerings, making the company poised for long-term growth. Its Growth Score of A makes the stock attractive for growth-oriented investors.

However, despite its strengths, TZOO’s growth expectations for 2025 are heavily reliant on converting its legacy members into paid memberships. Any resistance or delays in this transition can negatively impact its 2025 revenues.

Travelzoo is also facing macroeconomic uncertainties, where geopolitical tensions and potential travel spending slowdowns can impact TZOO’s membership and advertising revenues.

TZOO’s stretched valuation also remains a concern.

Travelzoo carries a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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