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Is Travelzoo (TZOO) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Travelzoo (TZOO - Free Report) . TZOO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 10.17, which compares to its industry's average of 24.92. TZOO's Forward P/E has been as high as 11.91 and as low as 5.37, with a median of 8.51, all within the past year.

Finally, we should also recognize that TZOO has a P/CF ratio of 8.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.10. Over the past 52 weeks, TZOO's P/CF has been as high as 11.87 and as low as 5.77, with a median of 8.54.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Travelzoo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TZOO feels like a great value stock at the moment.


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