Travelzoo (NASDAQ:TZOO) Downgraded to Strong Sell Rating by Zacks Research

Travelzoo (NASDAQ:TZOO) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Thursday,Zacks.com reports.

A number of other analysts have also issued reports on the company. Barrington Research boosted their target price on Travelzoo from $8.00 to $12.00 and gave the company an “outperform” rating in a research report on Friday, April 24th. UBS Group set a $9.50 price objective on shares of Travelzoo in a research note on Wednesday. Weiss Ratings raised shares of Travelzoo from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, May 19th. Wall Street Zen lowered Travelzoo from a “buy” rating to a “hold” rating in a report on Saturday. Finally, Ascendiant Capital Markets increased their price target on Travelzoo from $22.00 to $23.00 and gave the company a “buy” rating in a research report on Friday, May 22nd. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $14.83.

Travelzoo Stock Up 1.4%

NASDAQ TZOO opened at $7.23 on Thursday. Travelzoo has a 52 week low of $4.72 and a 52 week high of $12.39. The business’s fifty day simple moving average is $10.46 and its 200-day simple moving average is $8.09. The firm has a market cap of $74.32 million, a PE ratio of 241.00 and a beta of 1.28.

Travelzoo (NASDAQ:TZOO) last announced its quarterly earnings results on Tuesday, July 28th. The information services provider reported ($0.21) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.35). The firm had revenue of $23.21 million for the quarter, compared to analyst estimates of $25.00 million. Travelzoo had a negative return on equity of 10.40% and a net margin of 0.51%.During the same quarter in the prior year, the business earned $0.12 EPS. Research analysts expect that Travelzoo will post 0.15 EPS for the current year.

Hedge Funds Weigh In On Travelzoo

Several institutional investors have recently added to or reduced their stakes in TZOO. Bank of America Corp DE grew its stake in shares of Travelzoo by 1,242.5% in the 2nd quarter. Bank of America Corp DE now owns 2,148 shares of the information services provider’s stock valued at $27,000 after purchasing an additional 1,988 shares during the last quarter. Quarry LP acquired a new stake in Travelzoo in the third quarter valued at about $26,000. JPMorgan Chase & Co. boosted its holdings in Travelzoo by 42,900.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 3,010 shares of the information services provider’s stock valued at $38,000 after purchasing an additional 3,003 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Travelzoo during the 2nd quarter worth approximately $44,000. Finally, State of Alaska Department of Revenue purchased a new stake in shares of Travelzoo in the fourth quarter valued at approximately $25,000. Institutional investors and hedge funds own 27.39% of the company’s stock.

Key Stories 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.

About Travelzoo

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.