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2 Intriguing Internet Stocks to Buy Now: TRVG, UPWK

The Zacks Internet-Services Industry is currently in the top 37% of over 240 Zacks industries, and has recently placed two intriguing stocks on the coveted Zacks Rank #1 (Strong Buy) list in Trivago (TRVG - Free Report)  and Upwork Software (UPWK - Free Report) .

This Zacks industry includes many prominent companies such as Alphabet (GOOGL - Free Report) , Uber Technologies (UBER - Free Report) , and Zillow (Z - Free Report) , just to name a few. What makes Trivago and Upwork appealing is that they are benefiting from a positive trend of earnings estimate revisions, which has started to make their affordable stock prices very intriguing.

 

TRVG is an Intriguing Penny Stock

Providing a hotel and accommodation search platform, Trivago is one of the more appealing penny stocks with TRVG trading under $5 a share. Trivago’s top-line expansion and strategic moves could make it an attractive acquisition target for larger travel companies like Expedia (EXPD - Free Report)  and Booking.com (BKNG - Free Report) .

To that point, Trivago acquired a 30% stake in Holisto last year, an AI-driven hotel rate aggregator. Plus, Trivago’s total sales are projected to spike 18% in fiscal 2025 and are forecasted to rise another 11% in FY26 to $655.77 million.

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More importantly, FY25 and FY26 EPS estimates have spiked over the last 30 days, with Trivago recently exceeding Q1 expectations in late April. Trivago is now expected to post EPS of $0.10 this year and earnings of $0.20 a share in FY26.

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Image Source: Zacks Investment Research

 

UPWK Has Spiked 30% in the last Month

Trading around $16 a share, Upwork’s stock has spiked +30% in the last month but still trades at a reasonable 14.4X forward earnings multiple. Notably, UPWK still trades beneath the Zacks Internet-Services Industry average of 17.9X forward earnings and the S&P 500’s 21.4X.

The driver of Upwork’s eye-popping momentum is that the online recruitment services provider has been a prime beneficiary of AI-powered solutions, highlighting that its AI-driven productivity tools are vastly improving client engagement. Furthermore, Upwork recently posted quarterly records for revenue and net income when it reported its Q1 results on Monday. 

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Image Source: Zacks Investment Research

Exceeding Q1 expectations, Upwork provided favorable guidance, which could lead to a continued uptick in FY25 and FY26 EPS revisions, which have popped 9% and 10% in the last week, respectively. Upwork’s annual earnings are now expected to be up 9% in FY25 and projected to spike another 16% in FY26 to $1.33 per share.

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Image Source: Zacks Investment Research

 

Bottom Line

The potential for more upside in Trivago and Upwork stock is hard to overlook at the moment, as they are two up-and-coming players in the internet services market. Reassuringly, the risk-to-reward has become more favorable to buy TRVG and UPWK shares, thanks to the trend of positive earnings estimate revisions.

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