Travelzoo (NASDAQ:TZOO) is an online media marketplace providing offers and deals related to travel, entertainment, and lifestyle. While TZOO stock is trading in the red in 2022, it witnessed a recovery in the recent past and gained about 22% in one month. Moreover, this penny stock carries an Outperform Smart Score on TipRanks, implying a positive outlook.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Why Bet on Travelzoo Stock?
TZOO earns money through advertising fees. Also, it earns transaction-based revenues through the sale of vouchers. Moreover, it generates subscription revenues from its members-only service, Jack’s Flight Club, which offers cheap airfares. Thus, the normalization of travel demand is expected to boost its revenues.
The company is optimistic and expects to deliver substantially higher revenue and profitability in Q4.
Barrington analyst James Goss, who is bullish on TZOO stock, said that recovery in travel demand is important for the company but “a particularly strong demand environment can make it more challenging to secure attractive travel deals with suppliers and travel operators less inclined to offer attractive deals.”
Thus a return to normalcy in demand and consumer spending would result in a more favorable situation for the company. Goss expects TZOO to benefit from new initiatives.
Is TZOO Stock a Buy?
TZOO stock has received two Buy recommendations for a Moderate Buy consensus rating on TipRanks. Moreover, these analysts’ average price target of $9.50 implies 55.2%.
TZOO stock has a positive signal from bloggers. Moreover, it has an Outperform Smart Score of eight on TipRanks.
Bottom Line
The normalization of the travel demand curve and its affluent customer base augur well for future growth. Moreover, its high Smart Score is a positive. However, macroeconomic uncertainty could impact advertising revenues and limit the recovery of TZOO stock in the short term.
Besides for TZOO, investors can find top penny stocks with a higher Smart Score using TipRanks’ Penny Stocks Screener.
