2-Star Stocks Poised to Keep Plunging: Travelzoo?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online travel-deal company Travelzoo (NAS: TZOO) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Travelzoo and see what CAPS investors are saying about the stock right now.

Travelzoo facts

Headquarters (founded)

New York (1998)

Market Cap

$287.8 million

Industry

Internet software and services

Trailing-12-Month Revenue

$152.5 million

Management

CEO Christopher Loughlin (since 2010)
CFO Glen Ceremony (since 2011)

Trailing-12-Month Return on Equity

26.4%

Cash/Debt

$54.5 million / $0

Competitors

Expedia (NAS: EXPE)
TripAdvisor
(NAS: TRIP)
Kayak Software
(NAS: KYAK)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 30% of the 620 members who have rated Travelzoo believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those bears, fellow Fool John Divine (TMFDivine), succinctly summed up the Travelzoo underperform case for our community: "Crowded space + small company + no barriers to entry = Take the money and run."

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The article 2-Star Stocks Poised to Keep Plunging: Travelzoo? originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of TripAdvisor. Motley Fool newsletter services recommend TripAdvisor and Travelzoo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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