Need a Vacation? Give These 3 Travel Stocks a Go

NASDAQ: TRVG | trivago N.V. News, Ratings, and Charts

TRVG – The travel industry has been resilient against soaring inflation and falling consumer sentiment thanks to the robust pent-up demand. As consumer spending remains steady, travel & tourism stocks trivago (TRVG), Expedia Group (EXPE), and Travelzoo (TZOO) are expected to deliver stable returns in the upcoming months…

Pent-up demand with the easing of COVID-19 restrictions has helped the travel industry remain resilient against the rising inflation and declining consumer sentiment. According to a report by U.S. Travel Association, domestic leisure travel spending has surpassed pre-pandemic levels, while business travel is gaining traction and is expected to reach 81% of pre-pandemic levels this year.

Peter Kern, CEO of Expedia, said, “Despite the usual caveats for Covid, rising inflation to worry about, and of course the geopolitical situation, the pent-up demand that’s out there for travel seems to be outweighing anything the market can throw at it.”

Moreover, analysts expect an uptrend in travel stocks after BofA announced that consumers are still spending. “Our U.S. consumer clients remained resilient with continued strong deposit balances and spending levels,” said CEO Brian Moynihan. Earlier this month, BAC reported an 11% increase in credit and debit card spending in June.

The U.S. Travel & Tourism market revenue is expected to grow at a CAGR of 4.7% to reach $211.10 billion by 2026. Thus, investing in popular travel and tourism stocks trivago N.V. (TRVG), Expedia Group, Inc. (EXPE), and Travelzoo (TZOO) could be rewarding.

trivago N.V. (TRVG)

Headquartered in Düsseldorf, Germany, TRVG is a subsidiary of Expedia Lodging Partner Services Sarl. The company operates a hotel and accommodation search platform globally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels.

For the fiscal first quarter ended March 31, 2022, TRVG’s total revenue increased 165.9% year-over-year to €101.64 million ($103.80 million). Net cash from operating activities grew 186.4% to €12.10 million ($12.36 million). As of March 31, 2022, the company’s cash, cash equivalents, and restricted cash came in at €269.06 million ($274.79 million), up 39.1% year-over-year.

The consensus EPS estimate of $0.02 for the second quarter (ended June 2022) reflects an increase of 246.7% year-over-year. The consensus revenue estimate of $149.92 million for the same quarter indicates an improvement of 32% from the prior-year period. The company has also surpassed the consensus EPS estimates in three of the trailing four quarters.

Over the past month, the stock has lost 5.7% to close the last trading session at $1.48.

TRVG’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

It has an A grade for Quality and a B grade for Growth and Value. Within the Internet industry, it is ranked first out of 65 stocks. Click here to see the other ratings of TRVG for Momentum, Stability, and Sentiment.

Expedia Group, Inc. (EXPE)

EXPE is an online travel company operating through three segments: Retail, B2B, and Trivago. The company offers travel products and services, a loyalty program, hotel accommodation, advertising, and media services under five brands: Brand Expedia, Hotels.com, Vrbo, Expedia Partner Solutions, and Egencia.

On May 4, 2022, EXPE debuted its three-tiered strategy to redefine its place in the travel industry by introducing its new technology platform Expedia Group Open World, a reimagined marketplace that serves travelers, partners, and the industry. This platform is expected to deliver an e-commerce suite enabling anyone to enter the travel business.

EXPE’s revenue increased 80.5% year-over-year to $2.25 billion in the first quarter (ended March 31, 2022). Its gross bookings rose 58% from the year-ago value to $24.41 billion. Free cash flow grew 41.6% from the same period last year to $2.84 billion, while its adjusted EBITDA increased 398.3% year-over-year to $173 million.

For the fiscal second quarter (ended June 30, 2022), EXPE’s revenue is expected to increase 42% year-over-year to $3 billion. Its EPS is expected to grow 17% year-over-year to $4.13 in the current quarter. The company has an impressive earnings surprise history, as it surpassed the consensus EPS estimates in three of the trailing four quarters.

The stock has gained 2.3% over the past month to close the last trading session at $99.38.

EXPE POWR Ratings reflect solid prospects. The stock has an overall B rating, equating to a Buy in our proprietary rating system.

It has an A grade for Quality and a B for Growth and Value. The stock is ranked #4 in the same industry. Click here to see the other ratings of EXPE for Momentum, Stability, and Sentiment.

Travelzoo (TZOO)

TZOO is an Internet media company that offers travel, entertainment, and local deals from travel and entertainment companies and businesses in Asia Pacific, Europe, and North America. Its products and publications include Travelzoo Website, Travelzoo iPhone and Android apps, Travelzoo Network, and Travelzoo Top 20 email newsletter.

On June 23, 2022, the company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of its outstanding common stock. This share repurchase program is expected to boost shareholder returns.

TZOO’s revenues increased 29.2% year-over-year to $18.45 million in the first quarter ended March 31, 2022. Its gross profit rose 38.7% year-over-year to $15.62 million. Its non-GAAP operating income grew 333.9% from the year-ago value to $2.69 million, while its net income attributable increased 243.6% year-over-year to $2.36 million. Also, the company’s net income per share came in at $0.19, up 235.7% year-over-year.

The consensus revenue estimate of $80.38 million for the fiscal year 2022 (ending December 2022) represents a 27.2% improvement from the same period last year. Analysts expect TZOO’s EPS for the current year to increase 412.9% year-over-year to $0.78. It has surpassed the consensus EPS estimates in three of the trailing four quarters.

TZOO has gained 13.2% over the past month to close the last trading day at $6.52.

TZOO’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. It has an A grade for Sentiment and Quality and a B for Value. Again, within the same industry, it is ranked #3.

In addition to the POWR Ratings grades I’ve highlighted, you can see the TZOO ratings for Growth, Momentum, and Stability here.


TRVG shares were trading at $1.49 per share on Monday afternoon, up $0.01 (+0.34%). Year-to-date, TRVG has declined -31.65%, versus a -16.45% rise in the benchmark S&P 500 index during the same period.


About the Author: Shweta Kumari


Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...


More Resources for the Stocks in this Article

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

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession or Not Recession…That Is the Question

Every investor appreciates that recessions and bear markets go hand in hand. But the definition of a recession often seems more difficult to pin down. So are we in a recession? And if not, then does that mean that disaster has been averted or that the pain train is still rolling towards investors? This is an important debate because it helps us appreciate what lies ahead for the stock market (SPY). We will tackle this vital topic in this week's commentary. Read on below...

:  |  News, Ratings, and Charts

3 Active Stocks on Wall Street to Buy Right Now

Even though the U.S. stocks ended July with decent gains, growing recession fears could keep the stock market under pressure in the near term. However, despite the current market headwinds, it could be wise to invest in fundamentally sound stocks, Microsoft (MSFT), SIGA Technologies (SIGA), and Fortinet (FTNT), which have been active on Wall Street lately. Read on to learn more…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

:  |  News, Ratings, and Charts

2 Winning Stocks to Pay Attention to This Week

Concerns over soaring inflation, the Fed’s aggressive interest rate hikes, the decline in GDP for two consecutive quarters, and a potential recession are expected to keep the stock market under pressure in the near term. Fundamentally sound and winning stocks Murphy USA (MUSA) and JAKKS Pacific (JAKK) could be good additions to your watchlist as investors prepare for a busy week of inflation data. Let’s discuss…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

Read More Stories

More trivago N.V. (TRVG) News View All

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