TZOO Should I Buy
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TZOO is not a good buy right now for an impatient investor. The stock is still in a broader downtrend (bearish moving-average stack) while fundamentals show sharply weaker profitability (Q3 net income/EPS collapse) and insiders have been selling aggressively. Although MACD is improving and options positioning is call-heavy, there is no Intellectia buy signal today and the near-term pattern outlook skews negative over the next week. I would avoid initiating a new position now and wait for a technical trend reversal above resistance.
Trend/structure: Bearish overall (SMA_200 > SMA_20 > SMA_5), signaling the longer-term trend remains down despite minor stabilization. Momentum: MACD histogram is slightly positive and expanding (0.00297), suggesting downside momentum is fading and a short-term bounce is possible; RSI(6)=40.8 is neutral-to-weak (not oversold). Levels: Pivot 5.884 is near the post-market price (~5.855). Key support S1=5.647 then S2=5.501; resistance R1=6.121 then R2=6.267. A convincing buy setup would typically require reclaiming and holding above ~6.12. Pattern-based odds: Similar-pattern model implies ~-3.08% over the next week (weak near-term), but +23.43% over the next month (potential rebound if the trend improves).
Intellectia Proprietary Trading Signals
Product/news flow is constructive: multiple new/discounted member offers launched (Canada/U.S. Club offers, high-visibility travel packages), which can support subscriber engagement and near-term marketing momentum.
Analyst remains positive: Ascendiant reiterates Buy and expects stronger growth in 2026 driven by subscriber growth.
Insider selling: insiders are net sellers and selling amount increased ~319.97% over the last month (negative signal for near-term confidence).
Profitability deterioration: Q3 showed a steep drop in net income/EPS and gross margin despite revenue growth.
Technical backdrop: moving averages remain bearish, implying rallies may face overhead supply near resistance (~6.12+).
Latest quarter: 2025/Q3. Growth: Revenue increased to $22.198M (+10.45% YoY), indicating continued top-line expansion. Profitability: Net income fell to $0.15M (-95.29% YoY) and EPS to $0.01 (-96.15% YoY), showing a major earnings compression. Margins: Gross margin declined to 79.64% (-8.80% YoY), reinforcing that the quarter’s growth was not translating into earnings power.
Recent trend: Limited coverage in the provided data, but the latest update (2025-11-19) shows Ascendiant kept a Buy rating while cutting the price target to $23 from $26 after Q3. Wall Street pro view (pros/cons): Pros—expects subscriber growth to drive a stronger 2026; maintains bullish stance despite estimate cuts. Cons—near-term estimates were reduced post-Q3, acknowledging current execution/profitability softness.
