Groupon Inc (GRPN), OpenTable Inc (OPEN): Has Travelzoo Inc. (TZOO) Become the Perfect Stock?

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Unfortunately, the flash-deal model hasn’t really worked well. Groupon Inc (NASDAQ:GRPN), which brought daily deals to the forefront, has persistently lost ground as it struggles to figure out how to go beyond its original business model to incorporate new services like payment processing. Restaurant social-media company OpenTable Inc (NASDAQ:OPEN) also dabbled in the space before retreating to its core reservations business, and shares of the company have responded very favorably to the shift.

As a result, Travelzoo Inc. (NASDAQ:TZOO) has moved away from daily deals, instead looking to return to its original business model while tapping into international growth. That’s a strategy that travel-portal Priceline.com Inc (NASDAQ:PCLN) has executed to perfection, crushing its portal rivals over the years by creating a truly global network of hotels and other travel services that make it a go-to site for world travelers.

For Travelzoo Inc. (NASDAQ:TZOO) to improve, it needs to mine those new sources of revenue and reawaken its growth. Otherwise, it’ll have a lot of trouble getting much closer to perfection.

Keep searching
No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you’ll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.

The article Has Travelzoo Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends OpenTable and Priceline. The Motley Fool owns shares of Priceline.com.

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