Travelzoo: Earnings Improvement Not Reflected In Share Price

Dec. 19, 2022 6:23 AM ETTravelzoo (TZOO) Stock2 Comments

Summary

  • Travelzoo has had stable revenue growth, but earnings have become positive as the company's cost structure has improved.
  • Despite this, the share price has had poor performance over the past year, down 55%.
  • Therefore, investors are not reflecting recent improvements, as the company remains undervalued compared to peers, with an upside between 15% and 50%.

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Thomas Barwick

Thesis

Travelzoo (NASDAQ:TZOO) has had poor share price performance over the past year despite recent improvements in its financial performance. Revenue growth is stable, and as costs have improved, earnings have now become positive. Therefore, when comparing multiples to peers, we see that

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