Travelzoo Inc.

Travelzoo Inc. (TZOO - Snapshot Report) is pressuring its 52-week high after reporting better than expected third-quarter results on Oct 28.

Company Description

TravelZoo Inc. in an Internet media company that publishes travel and entertainment offers from third-party travel and entertainment companies in North America, Europe and Asia. The company was founded in 1998 and has a market cap of $241 million.

Third-Quarter Results

Revenue was up 27% from last year to $23.6 million. Earnings also came in strong at 8 cents, 12 cents ahead of the Zacks Consensus Estimate calling for a loss of 4 cents.

The company noted that its growth in Europe was particularly strong, up 82% from last year to $4.8 million. Travelzoo's North American results were the best in two years, with revenue up 18% to $18.9 million.

The company's subscriber base also increased, up 23% from last year to 16.3 million. Cash and equivalents stand at $15.7 million.

Estimates Jump

Estimates have moved higher on the good quarter, with the current year adding 6 cents to 5 cents per share. The next-year estimate is pegged at 31 cents, a bullish 510% growth projection.

Valuation

This is by no means a cheap stocks trading at 293X projected current year earnings.

The Chart

Shares of TZOO are pressuring the 52-week high just above $15. The long-term trend line that has been supporting shares in their upward ascent of the last 8 months is still very much in play. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

Read the full analyst report on TZOO