Travelzoo (TZOO) Moves 9.4% Higher: Will This Strength Last?

Travelzoo (TZOO) shares soared 9.4% 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 5.1% gain over the past four weeks.

Travelzoo extended its rally, driven by its growing momentum among the travel enthusiasts. Further, its growing footprint in North America and in Europe on the back of its trusted brand remains a major positive. Moreover, the company’s expanding global reach on the heels of its strong agreements with local licensees in countries like Japan, Australia, New Zealand and Singapore, is another positive.

This global media commerce company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -10.5%. Revenues are expected to be $20.46 million, up 10.9% 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, Booking Holdings (BKNG), finished the last trading session 1.6% higher at $2,652.41. BKNG has returned 1.2% over the past month.

For Booking Holdings , the consensus EPS estimate for the upcoming report has changed +1.4% over the past month to $9.63. This represents a change of +146.9% from what the company reported a year ago. Booking Holdings currently has a Zacks Rank of #1 (Strong Buy).

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