ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) – A Strong Growth Stock with Technical Breakout Potential

ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising price pattern, making it worth a closer look.

Strong Growth Fundamentals

ATAT scores highly in growth metrics, with key highlights including:

• Revenue Growth: Over the past year, revenue increased by 43.38%, while the three-year average growth stands at 35.84% annually.
• Earnings Growth: EPS surged by 37.89% in the last year, with a three-year average annual growth of 138.03%.
• Future Expectations: Analysts project continued growth, with estimated EPS and revenue increases of 23.09% and 23.87%, respectively, in the coming years.

The company also maintains strong profitability, with a Return on Invested Capital (ROIC) of 22.51%, outperforming 93.98% of its industry peers.

Financial Health & Valuation

ATAT’s balance sheet is robust, with:

• Low Debt: A Debt/Equity ratio of 0.02, well below industry averages.
• Strong Liquidity: Current and Quick Ratios above 2.2, indicating ample short-term financial flexibility.
• Reasonable Valuation: While the P/E ratio of 23.56 is slightly above the S&P 500 average, it remains cheaper than 64.66% of its industry peers.

Technical Breakout Setup

The stock is currently showing a bullish technical pattern:

• Trend Strength: Both short-term and long-term trends are positive.
• Support & Resistance: Key support levels are found near $31.47-$31.71, while resistance sits around $32.76-$32.87. A breakout above resistance could signal further upside.
• Bull Flag Formation: The recent consolidation after a strong upward move suggests potential for another leg higher.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental report and technical analysis.

Disclaimer

This is not investment advice. The observations are based on data available at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.