Expedia vs. Travelzoo: Which Travel Stock is a Better Investment?

NASDAQ: EXPE | Expedia Group Inc. News, Ratings, and Charts

EXPE – Travel stocks may be ready to rally especially as coronavirus case counts are dropping. Below, we shine the spotlight on two of the travel industry’s top stocks in Expedia (EXPE) and Travelzoo (TZOO).

Travel stocks have significantly weakened over the last few months as the most recent wave of the coronavirus depressed the outlook. However, there are some glimmers of hope as cases are sharply down in many of the hardest-hit states and on a national level as well.


If case counts continue to drop, then this could be a fantastic buy-the-dip opportunity for investors.

Below, we shine the spotlight on two of the travel industry’s top stocks in Expedia (EXPE) and Travelzoo (TZOO).


EXPE is renowned for its online travel services. The company provides travel planning, experience sharing and most importantly, the opportunity to purchase travel arrangements with a few keystrokes and mouse clicks.

EXPE is priced near the halfway point between its 52-week low of $87.90 and its 52-week high of $187.93. Investors don’t seem to have a strong feeling about this stock, largely because no one knows if the pandemic will worsen to the point that the masses fear air travel in those cramped cylindrical steel tube germ centers commonly referred to as airplanes.

EXPE has a beta of 1.71. This is a reasonable figure that indicates the stock will move with the market yet probably won’t prove egregiously volatile.

Check out EXPE’s POWR Rating performance and you will find it is a mixed bag. Overall, the stock has a C POWR Rating grade, meaning it is a Hold. EXPE has B grades in the Quality, Value and Growth components of the POWR Ratings. The stock has a F Sentiment component grade. Click here to find out how EXPE fares in the remainder of the POWR Ratings components including Momentum and Stability.

EXPE is ranked 10th out of the 75 stocks in the Internet segment. Investors are encouraged to study up on this industry by clicking here.

The analysts are pounding the table in favor of EXPE. If EXPE reaches the analysts’ average target price of $180.50, it will have increased by slightly more than 21% in value. The stock’s average analyst price target has increased $81.30 in the previous 45 weeks. A total of 32 analysts have provided EXPE recommendations. Out of these analysts, four consider the stock to be a Strong Buy, 10 consider it to be a Buy and 18 view it as a Hold.


TZOO is a web media business focused on providing information to its paying subscribers and other online visitors. The company specializes in providing information pertaining to travel and entertainment.

TZOO is currently trading at $11.13. The stock’s 52-week low is $6.07. TZOO’s 52-week high is $19.83.

TZOO has a forward P/E ratio of 16.49, meaning the stock appeals to both value and growth investors, regardless of tolerance for risk. However, TZOO’s beta of 2.06 is a bit high so there is a chance the stock will prove volatile.

TZOO has an A POWR Rating grade. This exemplary grade makes it clear the stock is a Strong Buy. TZOO has A grades in the POWR Rating components of Quality, Sentiment and Growth. Click here to learn more about TZOO’s POWR Ratings grades including its performance in the Momentum, Value and Stability components.

Out of the 75 stocks that comprise the Internet category, TZOO is ranked above all of them. Click here to find out more about this industry.

The analysts are as bullish as can be about TZOO’s future. If these experts are correct, the stock will hit their average target price of $23.67. A move to this level represents an 88.76% increase.

Which is the Better Investment?

Though EXPE is a barometer of the overarching travel industry, its merit pales in comparison to that of TZOO. TZOO’s A POWR Rating makes it the better investment. Roll with TZOO for now and continue to keep tabs on EXPE moving forward.

EXPE shares were unchanged in premarket trading Friday. Year-to-date, EXPE has gained 13.42%, versus a 19.95% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
EXPEGet RatingGet RatingGet Rating
TZOOGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Inflation Not Fading Fast Enough for Stock Investors

Investors may have celebrated the end of high inflation too soon. The CPI report shows inflation bouncing higher and thus pushing back the start date for Fed rate cuts. This has the S&P 500 (SPY) coming off recent highs. This begs questions like how much more downside could we see? And when will the bull market get back on track? 44 year investment veteran Steve Reitmeister shares his answers to these questions in this timely commentary including a preview of his top picks to stay ahead of the pack. Read on below for more...

3 Auto Stocks to Consider Over TSLA in April

Tesla (TSLA) reported a decline in deliveries in the first quarter, and Wall Street expects the company to deliver fewer vehicles than last year. Furthermore, rising competition, slowing EV sales, and stretched valuation make TSLA unattractive from an investment standpoint. Considering these factors, investors could consider buying fundamentally strong auto stocks Blue Bird (BLBD), Rolls-Royce Holdings (RYCEY), and Stellantis (STLA) over Tesla (TSLA). Read more...

3 Top-Rated Tech Stock Buys for Value in April

The technology sector is undergoing a notable surge, propelled by increasing digitalization endeavors among businesses and governmental support for technological progress. So, fundamentally sound tech stocks Box Inc. (BOX), Teradata (TDC), and Materialise (MTLS), which seem pretty undervalued, might be ideal buys this month. Continue reading...

Top Software Stocks at the Forefront of Market Gains

The software industry's prospects appear bright due to increasing investments in digital transformation, high demand for advanced software services from various sectors, and the integration of emerging technologies such as generative AI. Therefore, investors could consider buying quality software stocks Autodesk (ADSK), DocuSign (DOCU), and Pegasystems (PEGA) for solid gains. Read more...

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

Read More Stories

More Expedia Group Inc. (EXPE) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All EXPE News