ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) – A Strong Contender for CANSLIM Investors

ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) emerged from our CANSLIM stock screen as a compelling candidate for growth-focused investors. The company, which operates a network of lifestyle-themed hotels across China, demonstrates strong earnings momentum, healthy financials, and favorable technical trends. Below, we examine why ATAT aligns with the CANSLIM investment approach.

Key CANSLIM Criteria Met by ATAT

• Earnings Growth (C & A):

  • Quarterly EPS growth of 48.7% (vs. same quarter last year) and revenue growth of 38.5% exceed CANSLIM’s minimum thresholds.
  • Three-year EPS growth stands at 110%, well above the 25% benchmark.
  • Return on Equity (ROE) is 43.1%, indicating efficient capital use.

• New Highs & Relative Strength (N & L):

  • ATAT’s relative strength score of 92.8 means it outperforms 93% of the market, a hallmark of leading stocks.
  • The stock is trading near its 52-week high, reflecting strong investor interest.

• Institutional Sponsorship (I):

  • Institutional ownership is 61.9%, within the preferred range (not too high, but with room for increased buying).

• Financial Health (S):

  • A low debt-to-equity ratio of 0.02 suggests minimal financial risk.
  • Strong liquidity metrics, including a current ratio of 2.02, support operational stability.

Technical & Fundamental Highlights

• Technical Outlook:

  • Short-term trend is positive, with the stock consolidating near recent highs.
  • High trading volume confirms active participation.
  • Full technical report here.

• Fundamental Strength:

  • Profit margins (17.6%) and operating margins (22.4%) rank among the industry’s best.
  • Revenue and earnings growth are expected to remain robust, with forward EPS growth projected at 23.2%.
  • Detailed fundamental analysis here.

Our CANSLIM High Growth screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.