Travelzoo, together with its subsidiaries, operates as an Internet media company that engages in the provision of travel, entertainment, and local deals from travel and entertainment companies, and local businesses worldwide. Its publications and products include Travelzoo Website, Travelzoo Top 20 email newsletter, standalone Travelzoo emails, Travelzoo Network, Travelzoo mobile applications, Jack's Flight Club website, Jack's Flight Club mobile applications, and Jack's Flight Club newsletters. The company's Travelzoo website and newsletters include local deals and getaways listings that allow members to purchase vouchers for offers from local businesses, such as spas, hotels, and restaurants; Jack's Flight Club, a subscription service that provides members with information about exceptional airfares; and Travelzoo Network, a network of third-party Websites that list travel deals published by the company. It serves airlines, hotels, cruise lines, vacations packagers, tour operators, destinations, car rental companies, travel agents, theater and performing arts groups, restaurants, spas, and activity companies. Travelzoo Inc. was founded in 1998 and is headquartered in New York, New York.

Travelzoo

Expedia Group EXPE reported fourth-quarter 2024 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 15.46%. The figure increased 38.95% year over year.
EXPE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the earnings surprise being 45.86%, on average.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $3.18 billion rose 10% year over year. The figure lagged the Zacks Consensus Estimate by 3.52%.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote
B2B revenues increased 21% year over year to $1.04 billion. B2C increased 6% year over year to $2.07 billion. Trivago rose 2% year over year to $66 million.
Advertising revenues jumped 25% year over year. Newly launched ad types and new tools for partners to manage their campaigns drove customer engagement.
What Should You Expect From EXPE Shares Post Q4?
EXPE shares were up 11.14% in pre-market trading today.
Expedia shares have lost 7.4% year to date, underperforming the Zacks Retail Wholesale sector’s appreciation of 9.7%.
EXPE shares also underperformed the Zacks Electronic Commerce industry and its closest peers, including MakeMyTrip MMYT, Booking Holdings BKNG and Travelzoo TZOO.
While TZOO and MMYT shares have returned 14.7% and 3.9%, respectively, BKNG shares have lost 3.8% in the year-to-date period. The industry appreciated 7.2% over the same time frame.
EXPE offered positive guidance for 2025, which is expected to boost its share price in the near term.
EXPE’s Gross Bookings Rise Y/Y
Total gross bookings were $24.42 billion, which increased 13% year over year with a 5-point sequential acceleration in both B2C and B2B with a better-than-expected demand environment and strong operational execution.
B2C gross bookings increased 9% year over year, while B2B gross bookings increased 24%.
Lodging gross bookings grew 12% year over year to $20 billion, with hotel bookings climbing up 14%.
Strength in ‘booked room nights,’ which rose 12% from the year-ago quarter to 86.4 million, was a positive.
EXPE’s Operating Details
Adjusted EBITDA was $643 million in the reported quarter, up 21% year over year.
Direct sales and marketing expenses were $1.55 billion, up 12.99% year over year. Overhead expenses were $643 million, down 1% year over year.
Adjusted EBIT increased 280 basis points year over year to $338 million.
EXPE Debt Levels Improve, Burns Free Cash Flow
As of Dec. 31, 2024, cash and cash equivalents and short-term investments were $4.5 billion, down from $6.05 billion as of Sept. 30, 2024.
Long-term debt was $5.223 billion as of Dec. 31, 2024, compared with $5.221 billion as of Sept. 30, 2024.
The gross leverage ratio was reduced to 2.1, and Expedia remains on track toward its targeted gross leverage ratio of 2, driven by its ongoing strong EBITDA growth.
Net cash provided by operating activities was $198 million in the reported quarter, and Expedia’s free cash flow was $7 million.
EXPE has approximately $3 billion remaining under its current share repurchase authorization.
Expedia Offers Positive 2025 Guidance
EXPE expects gross bookings to be in the 4% to 6% range for first-quarter 2025. Revenue growth is expected to be 3%-5%.
It expects first-quarter EBITDA margins to be flat to slightly better year over year. The first quarter is expected to be the lowest EBITDA quarter, causing margins to be highly sensitive.
For 2025, EXPE expects gross bookings and revenue growth in the 4% to 6% range, which is roughly in line with 2024, factoring in the 2 points of negative FX impact. Expedia expects EBITDA margin expansion of 50 bps year over year.
EXPE’s Zacks Rank
Currently, Expedia has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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EXPE Q4 Earnings Beat Estimates, Stock Up on Solid Bookings Growth

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
Image Source: Zacks Investment Research
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
Image Source: Zacks Investment Research
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%.
Travelzoo Price and Consensus
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)
Image Source: Zacks Investment Research
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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TZOO Stock Surges 137% in a Year: Should Investors Buy, Sell or Hold?

Groupon GRPN shares have dipped 25.7% year to date (YTD), underperforming the broader Zacks Retail-Wholesale sector’s appreciation of 28.8%.
It has also underperformed the Zacks Internet - Commerce industry and its peers like Booking Holdings BKNG, Amazon AMZN and Travelzoo TZOO.
In the same time frame, shares of TZOO, BKNG and AMZN have returned 105.4%, 47.3%, and 38.6%, respectively. The industry has risen 33.5% YTD.
The company’s underperformance can be attributed to the decline in North America revenues due to an increase in local voucher redemption rates and in International revenues due to the exit of local business in Italy. In the third quarter of 2024, North America revenues of $86.9 million declined 9% year over year, whereas International revenues of $27.6 million decreased 13% year over year.
Groupon, Inc. Price and Consensus
Groupon, Inc. price-consensus-chart | Groupon, Inc. Quote
However, the strong performance of Consolidated Travel revenues bodes well for investors. Consolidated Travel revenues of $4.3 million increased 3.4% year over year.
GRPN’s Product Enhancement Drives Prospects
Groupon’s move from a deal company to a marketplace company has enabled it to add features to its platform to enhance its marketplace playbook and improve local experiences marketplace in various countries.
Groupon has not only invested in new feature development but also aims to leverage its front end to expand experiences and product features to drive customer momentum.
GRPN’s efforts to increase customer value are a tailwind. Improved personalization, AI-driven FAQ, custom merchant pages and relevant searches have increased customer interaction and retention and have also optimized targeting to drive customer momentum.
Groupon has launched the front end with multiple language capabilities to expand market reach and engagement. The expanded flexibility not only allows users with flexibility, it also enables GRPN to increase its global reach. Video content on merchant pages has driven customer traffic and interaction with category pages, allowing GRPN to target customers and provide the right product offering.
GRPN’s new and developing Platform for Performance front-end platform will enable a faster and more stable customer experience.
Groupon’s expanding partnerships with brands to drive incremental performance bodes well for investors.
GRPN’s Near-Term Prospect Dull
For the fourth quarter of 2024, the company expects revenues in the band of $124-$131 million, indicating a 10-5% year-over-year decline.
Adjusted EBITDA is expected to be between $14 million and $19 million.
Groupon expects a positive free cash flow for the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 6 cents per share, down 10 cents in the past 30 days and indicating a year-over-year decline of 80%.
The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $129.17 million, indicating year-over-year decline of 6.21%.
GRPN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in one quarter, the average surprise being 159.52%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
For 2024, the company expects revenues between $486 million and $493 million, indicating a year-over-year change in the band of (6%)-(4%).
Adjusted EBITDA is expected to be between $65 million and $70 million.
Groupon expects a positive free cash flow for 2024.
The consensus mark for 2024 loss is pegged at 29 cents per share against the loss of 52 cents per share in the year-ago quarter.
The Zacks Consensus Estimate for 2024 revenues is pegged at $491.35 million, indicating year-over-year decline of 4.58%.
GRPN’s Stretched Valuation Concern for Investors
GRPN shares are trading at a premium, as suggested by a Value Score of C.
In terms of the forward 12-month Price/Earnings (P/E) ratio, GRPN is trading at 58.8X, higher than the Zacks Retail-Wholesale sector’s 25.06X.
However, Groupon’s expanding product offering and market reach bodes well for investors.
GRPN currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better time to enter GRPN shares.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Groupon Shares Decline 26% YTD: How Should You Play the Stock?

eBay's EBAY share price has increased 44.8% year to date (YTD), outperforming the broader Zacks Retail-Wholesale sector’s appreciation of 28.8%.
However, the company has underperformed the Zacks Internet - Commerce industry, and its peers like Booking Holdings BKNG, Amazon AMZN and Travelzoo TZOO.
In the same time frame, TZOO, BKNG and AMZN shares have returned 105.4%, 47.3%, and 38.6%, respectively. The industry has risen 33.5% YTD.
The company’s outperformance can be attributed to the strengthening momentum across Focus Categories of EBAY and geo-specific investments. Further, first-party advertising revenues contributed to the top-line growth. For the third quarter of 2024, eBay’s first-party advertising products generated revenues of $396 million, up 14% on an FX-neutral basis from the prior-year quarter.
However, the dull performance of active buyers and stiff competition in the Retail Wholesale sector remain headwinds. At the end of the third quarter of 2024, EBAY’s active buyer base, which stood at 133 million at the end of the second quarter, increased 1% year over year.
eBay Inc. Price and Consensus
eBay Inc. price-consensus-chart | eBay Inc. Quote
The company prospects are also suffering due to macroeconomic uncertainty and a dull consumer spending environment.
Will Expanding Portfolio Drive EBAY’s Top Line?
eBay has been leveraging its innovation strategy from a focused category to provide relevant products to customers, particularly in the C2C seller segment, as the inventory is less price sensitive against the B2C seller segment.
eBay recently launched Evo, an in-house brand and design offering, that aims to provide a seamless customer experience along with a modern and simple approach.
eBay’s effort to drive geo-specific top line bodes well for investors. The company introduced enhancements in the pre-owned apparel segment in the U.K., including simplified tools for sellers and improved tools to increase demand via Explore and Shop the Look.
eBay has also introduced capabilities to improve the C2C experience for customers and has provided a simplified native listing flow, improved local pickup processes, managed shipping and has developed discovery capabilities and eBay balance.
EBAY acquired Golbin, expanding its market reach in the collectibles market. The company provides users a platform to auction select items, creating awareness for the platform as well as driving consumer momentum and traffic.
Further, EBAY also partnered with Liberis to expand the Seller Capital program in the United States to provide sellers with Flexible Cash Advance for funds from $5000 to $2 million. The company recently launched a horizontal rollout of a native listing flow for C2C sellers in the U.K. to reduce the decision steps for sellers and provide pricing recommendations by integrating AI-driven descriptions and photo enhancements to drive experience.
EBAY is leveraging GenAI and its internal LLM to develop tools for B2C users and launched a bulk listing tool to create a large number of listings efficiently and quickly.
However, eBay faces intense competition in the e-commerce segment. Further, softness in advertising products is a headwind. Macroeconomic uncertainties and sluggish consumer discretionary spending remain concerns.
EBAY’s Positive Guidance
For the fourth-quarter 2024, eBay expects revenues in the range of $2.53-$2.59 billion. On an FX-neutral basis, revenue growth is anticipated to be (1)-1%.
The non-GAAP operating margin for the fourth quarter of 2024 is expected to be between 26.5% and 27%.
GMV for the fourth quarter is projected to be between $18.9-$19.3 billion.
Non-GAAP earnings per share are anticipated between $1.17 and $1.22.
EBAY’s Near-Term Prospect Steady
The consensus mark for 2024 earnings is pegged at $4.83 per share, unchanged over the past 30 days, and up 13.92% from the year-ago quarter.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $1.21 per share, down by a cent in the past 30 days and indicating a year-over-year growth of 13.08%.
EBAY’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 3.33%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for 2024 revenues is pegged at $10.3 billion, indicating year-over-year growth of 1.85%.
The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $2.59 billion, indicating year-over-year growth of 1.06%.
EBAY’s Shares: Buy, Hold or Sell?
EBAY shares are currently fairly priced, as suggested by a Value Score of B.
However, sluggish active user growth and intense competition in the Retail-Wholesale sector hurt EBAY’s prospects.
EBAY currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better time to enter EBAY shares.
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eBay Stock Gains 45% YTD: Here's How Investors Should Play It

Travelzoo TZOO, the premier membership club for travel enthusiasts, has witnessed an impressive rally, surging 39.7% since reporting its third-quarter 2024 results. Despite a slight revenue dip, the company's strategic initiatives and robust profitability metrics suggest a compelling investment case for both current and potential investors.
Share-Price Movement
Image Source: Zacks Investment Research
Strong Profitability Despite Revenue Headwinds
While Travelzoo's third-quarter 2024 consolidated revenues experienced a modest 2% year-over-year decline to $20.1 million, the company demonstrated remarkable operational efficiency. Operating profit jumped 30% to $4 million, representing a healthy 20% of revenues, up from $3.1 million in the prior year. The non-GAAP operating profit reached $4.9 million, constituting 25% of revenues, showing significant improvement from $3.9 million in the previous year.
Geographic Performance and Market Position
The company's European segment emerged as a particularly bright spot, with operating margins increasing to 17% in third-quarter 2024. While North American revenues saw a 4% decrease to $12.8 million, the segment maintained a robust operating margin of 25%, demonstrating the company's ability to maintain profitability even during slower periods.
Strategic Growth Initiatives
Travelzoo's transition to a membership-fee model presents a significant growth catalyst for 2025. The company introduced membership fees at the beginning of 2024, with legacy members (representing more than 95% of current members) exempt during 2024 but required to pay starting January 2025. This strategic move is expected to drive substantial revenues and profit growth in 2025.
Jack's Flight Club Performance
The company's 60% ownership in Jack's Flight Club continues to deliver strong results, with revenues increasing 11% year over year to $1.2 million in the third quarter. Premium subscribers grew 14%, and the implementation of price increases for new subscribers, along with expansion into Canada, has begun showing positive results in terms of marketing efficiencies and customer acquisition costs.
Solid Financial Position
Travelzoo maintains a strong financial foundation with $12.1 million in consolidated cash and cash equivalents as of Sept. 30, 2024. The company generated a healthy operating cash flow of $5.3 million during the quarter, even while executing significant share repurchases of 552,679 shares, demonstrating confidence in its business model and commitment to shareholder returns.
The stock's valuation metrics, including a forward P/E ratio of 16.85, suggest that the market may still be undervaluing the company's growth potential compared with the Zacks Internet - Commerce industry’s 25.25. This relatively low price-to-earnings multiple, coupled with the anticipated earnings growth from the membership fee implementation, presents an intriguing opportunity for value-oriented investors.
TZOO’s P/E F12M Ratio Depicts Discounted Valuation
Image Source: Zacks Investment Research
TZOO Battles Competitors and Conversions
Investors should remain cautious. The travel industry is notoriously sensitive to economic fluctuations, and any global downturn could impact Travelzoo's performance. Additionally, the success of the paid membership model is not guaranteed, and any significant member attrition during the transition could dampen growth prospects.
The company faces challenges in its various business segments. While its core advertising revenues held steady at $20 million in the second quarter of 2024, the company will need to ensure this crucial revenue stream remains robust. Additionally, new initiatives like Travelzoo META and licensing agreements in Japan, Australia, New Zealand and Singapore are still in their early stages, contributing only modestly to the bottom line.
Travelzoo operates in the fiercely competitive travel industry dominated by giants like Expedia EXPE and Booking.com, part of Booking Holdings BKNG. Groupon's GRPN stronghold in local deals and the rise of AI-driven personalized travel platforms further squeeze TZOO's niche. Kayak and Skyscanner's superior flight search capabilities further erode Travelzoo's relevance in a rapidly evolving digital travel landscape. Travelzoo's risky pivot to a paid model could backfire, driving price-sensitive users to free alternatives.
Investment Thesis and Outlook
Several factors make Travelzoo an attractive investment opportunity at current levels. The company's ability to maintain high operating margins, particularly in its traditionally slowest quarter, speaks to the strength of its business model. Management expects revenue growth in fourth-quarter 2024, albeit at a more moderate pace than 2023, along with higher profitability both year over year and quarter over quarter.
The anticipated substantial revenue growth in 2025, driven by the implementation of membership fees, provides a clear catalyst for future value creation. Additionally, the company's focus on affluent, active travelers who are open to new experiences (91% of members) positions it well in the premium travel market segment.
The Zacks Consensus Estimate for TZOO’s 2024 revenues is pegged at $85.57 million, indicating year-over-year growth of 1.3%. The consensus mark for 2024 earnings is pegged at $1.09 per share, unchanged over the past 30 days. The figure indicates year-over-year growth of 36.25%.
Image Source: Zacks Investment Research
Conclusion
For current investors, holding onto Travelzoo shares appears prudent given the company's strong fundamentals and clear growth catalysts ahead. The combination of robust operating margins, healthy cash flow generation, and the upcoming membership fee implementation in 2025 suggests significant upside potential.
For potential investors, the current momentum following third-quarter results, coupled with the company's strategic positioning and growth initiatives, presents an attractive entry point. The stock's recent surge appears justified by improving operational metrics and the company's clear path to revenue growth in 2025. Travelzoo currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Travelzoo Rises 39.7% Since Q3 Earnings: Time to Buy the Stock?

Expedia Group EXPE reported third-quarter 2024 adjusted earnings of $6.13 per share, which beat the Zacks Consensus Estimate by 0.49%. The figure increased 13% year over year.
EXPE’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 42.74%, on average.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $4.06 billion rose 3% year over year. The figure lagged the Zacks Consensus Estimate by 1.17%.
B2B revenues increased 18% year over year to $1.2 billion. However, B2C declined 1.4% year over year to $2.78 billion. Trivago declined 11.3% year over year to $102 million.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote
Advertising revenues jumped 32% year over year. Simplified sign-up process and expanding product capabilities like video ads and search results are driving 30% increase in engagement.
What Should You Expect From EXPE Shares Post Q3?
EXPE shares were up 4.18% in pre-market trading.
Expedia shares have returned 14.7% year to date (YTD), outperforming the Zacks Retail Wholesale sector’s appreciation of 25.4%.
EXPE shares also underperformed the Zacks Internet Commerce industry and its closest peers, including MakeMyTrip MMYT, Booking Holdings BKNG and Travelzoo TZOO.
YTD, MakeMyTrip, Booking and Travelzoo shares have returned 121.3%, 82% and 38.7%, respectively. The industry appreciated 35.1% over the same time frame.
EXPE offered positive guidance for 2024, which is expected to boost its share price in the near term.
EXPE’s Gross Bookings Rises Y/Y
Total gross bookings were $27.5 billion, which increased 7% year over year and 150 basis points sequentially.
B2C gross bookings increased 3% year over year, while B2B gross bookings increased 19%.
Lodging gross bookings grew 8% year over year to $20 billion, with hotel bookings climbing up 10%.
Strength in ‘booked room nights,’ which rose 9% from the year-ago quarter to 97.4 million, was a positive.
EXPE’s Operating Details
Adjusted EBITDA was $1.25 billion in the reported quarter, up 3% year over year.
Direct sales and marketing expenses were $1.9 billion, up 11% year over year. Overhead expenses were $602 million, down 3% year over year.
Adjusted EBIT fell 1% year over year to $892 million.
EXPE’s Debt Levels Improve, Burns Free Cash Flow
As of Sept. 30, 2024, cash and cash equivalents and short-term investments were $6.24 billion, down from $6.27 billion as of June 30, 2024.
Long-term debt was $6.263 billion as of Sept. 30, 2024 compared with $6.259 billion as of June 30, 2024.
Gross leverage ratio was reduced to 2.2X, and Expedia remains on track toward its targeted gross leverage ratio of 2X, driven by its ongoing strong EBITDA growth.
Expedia used $1.49 billion in net cash in the reported quarter and burnt $1.687 billion in free cash flow.
EXPE has approximately $3.2 billion remaining under its current share repurchase authorization.
Expedia Offers Positive Guidance
EXPE expects gross bookings in the 6% to 8% range for fourth-quarter 2024, driven by a more favorable outlook for its air business. Revenue growth is expected to be roughly 1% lower than gross bookings growth.
It expects fourth-quarter EBITDA and EBIT to be relatively steady year over year.
For 2024, EXPE expects gross bookings to be up 5% over 2023. Revenue growth is expected to remain 6% over 2023. EBITDA and EBIT margins are now expected to be slightly up year over year.
Zacks Rank
Currently, Expedia has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
MakeMyTrip Limited (MMYT) : Free Stock Analysis Report
Travelzoo (TZOO) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Expedia's Q3 Earnings Beat Estimates, Revenues Rise Y/Y

In a striking display of market resilience, Travelzoo TZOO has seen its stock surge 22.9% year to date, outpacing the broader Zacks Retail-Wholesale sector, which returned 19.9%, catching the eye of investors. This impressive rally comes as the travel deal publisher navigates a pivotal transition in its business model, raising questions about the sustainability of its growth and the potential for further gains.
Travelzoo presents a compelling investment opportunity based on its strategic shift to a paid membership model, potentially unlocking significant revenue growth from its vast legacy user base. However, the successful execution of the membership transition and industry volatility remain key risks to monitor.
Year-to-date Performance
Image Source: Zacks Investment Research
TZOO's Pivot: Free to Paid Model Sparks Investor Hope
Travelzoo, known for its curated travel and experience deals, boasted a global membership of 30.8 million as of June 30, 2024. While this figure remains consistent with the previous year, it represents a massive potential for monetization.
The company's management has set its sights on a transformative goal of converting over 95% of its 29 million legacy members into paying subscribers by Jan. 1, 2025. This strategic shift, announced in December 2023, introduces a membership fee structure that exempts existing members for the 2024 calendar year but will require payment starting in 2025. The anticipation of this membership fee rollout has likely contributed to investor optimism, driving the stock's year-to-date gains.
The company's growth strategy extends beyond its core membership model. Jack's Flight Club, in which Travelzoo holds a 60% stake, saw a 9% year-over-year increase in revenues from unaffiliated customers, reaching $1.1 million. The number of premium subscribers for this service jumped 19%, indicating strong consumer interest in specialized travel offerings.
Travelzoo is exploring new avenues for growth, including the Travelzoo META initiative, aimed at producing Metaverse travel experiences. While still in its nascent stages, with New Initiatives business segment revenues at $23,000 in second-quarter 2024, this venture represents the company's commitment to innovation and future growth avenues.
The stock's valuation metrics, including a forward P/E ratio of 10.62, suggest that the market may still be undervaluing the company's growth potential compared with the Zacks Internet - Commerce industry’s 25.36. This relatively low price-to-earnings multiple, coupled with the anticipated earnings growth from the membership fee implementation, presents an intriguing opportunity for value-oriented investors.
TZOO’s P/E F12M Ratio Depicts Discounted Valuation
Image Source: Zacks Investment Research
From a financial perspective, Travelzoo maintains a solid footing. Despite an aggressive share buyback program that saw the repurchase of 800,000 outstanding common shares, the company reported a consolidated cash and cash equivalents position of $13.2 million as of June 30, 2024. This strong balance sheet, with more cash than debt, provides Travelzoo with the flexibility to invest in growth initiatives while returning value to shareholders.
The company's recent financial performance has also been steady, with second-quarter 2024 revenues holding steady at $21.1 million year over year. More impressively, Travelzoo reported a 23% increase in operating profit, reaching $4.0 million. This improvement in profitability, coupled with a robust gross profit margin of 87.6% over the last 12 months, underscores the company's operational efficiency and strong market position.
Travelzoo has provided a cautiously optimistic outlook. For the third quarter of 2024, the company expects year-over-year revenue growth, although at a slower pace than in 2023, along with higher profitability.
The Zacks Consensus Estimate for TZOO’s 2024 revenues is pegged at $86.44 million, indicating year-over-year growth of 2.33%. The consensus mark for 2024 earnings is pegged at 97 cents per share, unchanged over the past 30 days. The figure indicates year-over-year growth of 21.3%.
Image Source: Zacks Investment Research
TZOO's Risky Bet: Competitors and Conversions
Investors should remain cautious. The travel industry is notoriously sensitive to economic fluctuations, and any global downturn could impact Travelzoo's performance. Additionally, the success of the paid membership model is not guaranteed, and any significant member attrition during the transition could dampen growth prospects.
The company faces challenges in its various business segments. While its core advertising revenues held steady at $20 million in the second quarter of 2024, the company will need to ensure this crucial revenue stream remains robust. Additionally, new initiatives like Travelzoo META and licensing agreements in Japan, Australia, New Zealand and Singapore are still in their early stages, contributing only modestly to the bottom line.
Travelzoo operates in a fiercely competitive travel industry dominated by giants like Expedia EXPE and Booking.com, a part of Booking Holdings BKNG. Groupon's GRPN stronghold in local deals and the rise of AI-driven personalized travel platforms further squeeze Travelzoo's niche. Kayak and Skyscanner's superior flight search capabilities further erode Travelzoo's relevance in a rapidly evolving digital travel landscape. Travelzoo's risky pivot to a paid model could backfire, driving price-sensitive users to free alternatives.
Conclusion
While the 23% year-to-date stock price increase is impressive, the key question for investors is whether the anticipated membership growth will translate into sustained stock performance. The company's track record of operational efficiency, coupled with its innovative approaches to monetization and market expansion, provides a strong foundation for optimism. However, the execution of the membership fee strategy and the ability to add value to justify the new cost structure will be critical in determining Travelzoo's trajectory in the coming years. While it may be premature to abandon the stock for those who have already invested in it, new investors should wait for a better entry point. Travelzoo currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Groupon, Inc. (GRPN) : Free Stock Analysis Report
Travelzoo (TZOO) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Travelzoo Jumps 23% YTD: Will Membership Growth Propel Stock Further?

Last week, all three major U.S. indexes, the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average gained 2%, 1.2% and 1.1%, respectively.
The Federal Reserve boosted investor sentiment with a much anticipated 50-basis-point cut in the benchmark lending rate at the FOMC meeting held on Sept. 18. Currently, the overnight interest rate is in the range of 4.75-5.00% after the first cut of the Fed’s fund rate since March 2020.
Laying the Fed’s plan for the coming years, Chairman Jerome Powell, in his speech said the interest rate would fall further by 50 basis points by the end of this year, a full percentage point in 2025, and half of a percentage point in 2026 to bring back interest rates to the 2.75-3% range.
Although the September rate cut was in line with street expectations, the magnitude of it raised concerns about whether the big rate cut was predominantly to avoid an imminent recession.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Phibro Animal Health and PulteGroup Following Zacks Rank Upgrade
Shares of Phibro Animal Health Corporation PAHC have gained 18.5% (versus the S&P 500’s 2.9% increase) since it was upgraded to a Zacks Rank #2 (Buy) on July 24.
Another stock, PulteGroup, Inc. PHM, which was upgraded to a Zacks Rank #2 on July 23, has returned 13.1% (versus the S&P 500’s 2.7% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
A hypothetical portfolio of Zacks Rank #1 stocks has returned +6.1% in the year-to-date period through April 1, 2024, vs. +11.3% for the S&P 500 index and +7.7% for the equal-weight version of the S&P 500 index.
This hypothetical portfolio returned +20.63% in 2023 vs. +24.83% for the S&P 500 index and +15% for the equal-weight S&P 500 index.
The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the concentrated performance of mega-cap stocks since October 2022.
The Zacks Model Portfolio — consisting of Zacks Rank #1 stocks — has outperformed the S&P index by more than 16 percentage points since 1988 (through April 1, 2024, the Zacks # 1 Rank stocks generated an annualized return of +27.6% since 1988 vs. +11.1% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Phibro Animal Health’s historical EPS and Sales here>>>
Check PulteGroup’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrades Travelzoo and SB Financial
Shares of Travelzoo TZOO and SB Financial Group, Inc. SBFG have advanced 40.7% (versus the S&P 500’s 4.7% increase) and 26.1% (versus the S&P 500’s 4.6% rise), since their Zacks Recommendation was upgraded to Outperform on July 29 and July 30, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Axon Enterprise, Solventum Shoot Up
Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have gained 33.7% over the past 12 weeks. The stock was added to the Focus List on June 3, 2020. Another Focus-List holding, Solventum Corporation SOLV, which was added to the portfolio on April 1, 2024, has returned 32.3% over the past 12 weeks. The S&P 500 has advanced 5% over this period.
The Focus List portfolio returned +10.23% in 2024 Q1 vs. +10.56% for the S&P 500 index and +7.9% for the equal-weight S&P 500 index.
The 50-stock Zacks Focus List model portfolio returned +31.44% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.91% (through March 31, 2024). This compares to a +10.25% annualized return for the S&P 500 index in the same time period.
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Zacks ECAP Stocks Fiserv & Oracle Corporation Make Significant Gains
Fiserv, Inc. FI, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 19.2% over the past 12 weeks. Oracle Corporation ORCL has followed Fiserv with 19% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, has returned +9.08% in the year-to-date period (through March 31, 2024) vs. +10.42%.
In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.
With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks Public Storage and American Tower Outperform Peers
Public Storage PSA, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 25.8% over the past 12 weeks. Another ECDP stock, American Tower Corporation AMT, has also climbed 20.9% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
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With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
ECDP has returned +4.47% in the year-to-date period (through March 31, 2024) vs. +10.42% for the S&P 500 index (IVV) and +6.9% for the Dividend Aristocrats ETF (NOBL).
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
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Zacks Top 10 Stocks Ollie's Bargain Delivers Solid Returns
Ollie's Bargain Outlet Holdings, Inc. OLLI, from the Zacks Top 10 Stocks for 2024, has jumped 30.4% year to date, which compares to the S&P 500 index’s +20% increase.
The Top 10 portfolio returned +19.56% in 2024 Q1 vs. +10.56% for the S&P 500 index and +7.9% for the equal-weight version of the index.
The Top 10 portfolio returned +25.15% in 2023 vs. +26.28% for the S&P 500 index. Since 2012, the Top 10 portfolio has produced a cumulative return of +1,060.9% through the end of 2023 vs. +360.1% for the S&P 500 index.
Since 2012, the Zacks Top 10 portfolio has produced an annualized return of +25.02% through the end of 2024 Q1 vs. +14.1% for the S&P 500 index and +12.7% for the equal-weight version of the index. The portfolio has produced a cumulative return of +1,442.3% vs. +403.03% for the S&P 500 index and +331.29% for the equal-weight index.
Zacks Names #1 Semiconductor Stock
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American Tower Corporation (AMT) : Free Stock Analysis Report
Public Storage (PSA) : Free Stock Analysis Report
PulteGroup, Inc. (PHM) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
SB Financial Group, Inc. (SBFG) : Free Stock Analysis Report
Travelzoo (TZOO) : Free Stock Analysis Report
Solventum Corporation (SOLV) : Free Stock Analysis Report
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Take the Zacks Approach to Beat the Markets: Phibro Animal Health, Travelzoo, Ollie's Bargain Outlet in Focus

For Immediate Release
Chicago, IL – August 28, 2024 – Stocks in this week’s article are American Guild Holdings Co. GHLD, DoubleDown Interactive Co., Ltd. DDI and Travelzoo TZOO.
Buy 3 Top Stocks on the Verge of a Breakout: GHLD, DDI, TZOO
After an early August swoon, major bourses on Wall Street rebounded following encouraging retail sales and initial claims reports that quelled recession fears. Federal Reserve Chair Jerome Powell’s latest comments that the time has arrived for interest rate cuts also drove stocks higher. The current Middle East tension may, to some extent, dampen the upward trajectory.
Nonetheless, it’s prudent for astute investors to place bets on breakout stocks that can make the most of the stock market’s largely broader uptrend. To pick breakout stocks, investors should zero in on stocks whose prices vary within a narrow band.
If the stock price falls below this channel, it could be the best time to sell it off. However, the best time to buy a stock per this strategy is when it is about to break above this trading band. Such stocks offer the prospect of impressive gains.
To that end, American Guild Holdings Co. , DoubleDown Interactive Co., Ltd. and Travelzoo have been selected as the breakout stocks for today.
Zeroing-In on Breakout Stocks
To select the right breakout stock, one has to first calculate its support and resistance level. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price it trades within a considerable period.
In other words, the demand for a stock is at its lowest at its support level, which means that most traders are willing to sell it. At the resistance level, most traders are willing to go long on the stock, meaning they would like to add it to their portfolio.
Has a Genuine Breakout Happened?
The primary risk associated with such a strategy is that the decision to buy an apparent breakout candidate has been incorrectly timed. When a stock moves above the resistance level, it should be a highly prized commodity for traders. However, whether such a breakout is genuine is another matter altogether.
For a bona fide breakout, the stock’s earlier resistance barrier should become its new support level. This only happens if the trading channel that has been established is tested by observing long-term price trends. The strength of the support and resistance levels can be ascertained only through such a study. Despite the risk of misidentification, correctly identifying such stocks can yield considerable returns, even at a price that may not seem attractive at first glance.
These criteria narrow the universe of more than 6,853 stocks to only 23. Here are the top three stocks:
American Guild
American Guild provides financial services. It originates, sells and services residential mortgage loans principally in the United States. GHLD has an expected earnings growth rate of 96.2% for the current year.
DoubleDown Interactive
DoubleDown Interactive is a developer and publisher of digital social casino games. DDI has an expected earnings growth rate of 15.8% for the current year.
Travelzoo
Travelzoo is an Internet media company. TZOO has an expected earnings growth rate of 18.8% for the current year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2327292/buy-3-top-stocks-on-the-verge-of-a-breakout-ghld-ddi-tzoo?art_rec=quote-stock_overview-zacks_news-ID01-txt-2327292
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Travelzoo (TZOO) : Free Stock Analysis Report
Guild Holdings Company (GHLD) : Free Stock Analysis Report
DoubleDown Interactive Co., Ltd. Sponsored ADR (DDI) : Free Stock Analysis Report
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Zacks.com featured highlights include American Guild, DoubleDown Interactive and Travelzoo

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Dow Jones Select MicroCap Index Fund ETF (Symbol: FDM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $74.03 per unit.
With FDM trading at a recent price near $59.42 per unit, that means that analysts see 24.58% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FDM's underlying holdings with notable upside to their analyst target prices are RCM Technologies, Inc. (Symbol: RCMT), Travelzoo (Symbol: TZOO), and Landsea Homes Corp (Symbol: LSEA). Although RCMT has traded at a recent price of $18.19/share, the average analyst target is 86.92% higher at $34.00/share. Similarly, TZOO has 68.92% upside from the recent share price of $7.40 if the average analyst target price of $12.50/share is reached, and analysts on average are expecting LSEA to reach a target price of $14.50/share, which is 66.09% above the recent price of $8.73. Below is a twelve month price history chart comparing the stock performance of RCMT, TZOO, and LSEA:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Stocks with Recent Secondaries That Hedge Funds Are Buying
DELL Split History
PSV shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	13.50 15.04
Price/Sales	2.02 0.99
P/B	0.00 1.44
P/FCF	8.68 11.54

Indicator	TTM Median
ROE	400.00 13.09
ROA	23.19 4.76
ROI	0.00 6.69
Net Worth	0.17 0.77
Quick Ratio	0.00 0.94
Current Ratio	0.72 1.25

Indicator	TTM Median
Net Profit Margin	14.12 9.66
Operating Margin	20.00 14.22
Gross Margin	88.10 54.08
Return on tangible equity	0.00 25.55

Indicator	TTM Median
EPS	0.25 0.25
EPS Forecast	0.25 0.22
Revenue	23.00M 89.00M
Gross Profit	19.00M —
EBITDA	4.00M —

Travelzoo

Fundamental TZOO

Valuation

Debts

Efficiency

Other ratios

Revenue