Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online travel deal company Travelzoo
With that in mind, let's take a closer look at Travelzoo's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||New York (1998)|
|Market Cap||$1.15 billion|
|Industry||Internet software and services|
|Trailing-12-Month Revenue||$121.23 million|
CEO Christopher Loughlin (since 2010)
CFO Wayne Lee (since 2006)
|Return on Equity (Average, Past 3 Years)||17.1%|
|Cash/Debt||$51.8 million / $0|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last week, robertshrestha touched on Travelzoo's seemingly unsustainable price action: "Negative earnings, questionable competitive moat, red hot stock price, and high forward valuation. Too risky for my taste."
In fact, Travelzoo currently sports a lofty forward P/E of 30. That represents a clear premium to listed rivals Expedia (13.2), Google (13.3), and Priceline (19.4).
CAPS member Onigato elaborates on the bear case:
TravelZoo is riding on a contact high from speculation on what Groupon and Facebook *might* do if they *maybe* go public at an undisclosed time in an uncertain future.
The company isn't turning a profit, they aren't unique in the market, and frankly, they are way overpriced.
They might do okay, but I don't seem them to be set to dominate.
What do you think about Travelzoo, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Google and Priceline. The Motley Fool owns shares of Google. 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 Fool's disclosure policy always gets a perfect score.