Travelzoo (TZOO) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Travelzoo (TZOO) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable as it indicates strong future prospects [4] - Travelzoo's historical EPS growth rate is 45%, with projected EPS growth of 18.7% this year, surpassing the industry average of 18.6% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - Travelzoo's year-over-year cash flow growth is 55.4%, significantly higher than the industry average of -4.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 16.3%, compared to the industry average of 7.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Travelzoo's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 3.3% over the past month [9] Group 5: Overall Assessment - Travelzoo's combination of upward earnings estimate revisions and a Growth Score of B positions it as a potential outperformer and a solid choice for growth investors [10][11]