Travelzoo TZOO shares soared 5% in the last trading session to close at $6.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.5% loss over the past four weeks.
TravelZoo stock is benefitting from its exclusive membership model enabling luxury travel suppliers to offer discrete discounts without publicly damaging brand positioning.
This global media commerce company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -57.7%. Revenues are expected to be $22.54 million, up 9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Travelzoo, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TZOO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Travelzoo is a member of the Zacks Internet - Commerce industry. One other stock in the same industry, Groupon GRPN, finished the last trading session 2.2% lower at $15.78. GRPN has returned -8.2% over the past month.
For Groupon, the consensus EPS estimate for the upcoming report has changed -32.1% over the past month to $0.19. This represents a change of +115.8% from what the company reported a year ago. Groupon currently has a Zacks Rank of #4 (Sell).
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Travelzoo (TZOO): Free Stock Analysis Report Groupon, Inc. (GRPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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