ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) Demonstrates Strong CAN SLIM Investment Profile

The CAN SLIM investment methodology, created by William O'Neil, integrates fundamental and technical analysis to find high-growth stocks possessing solid momentum potential. This organized method assesses companies using seven main criteria symbolized by the acronym: Current quarterly earnings growth, Annual earnings increases, New products or services, Supply and demand dynamics, Leadership status among peers, Institutional sponsorship, and overall Market direction. Stocks satisfying these strict standards usually show both solid business fundamentals and favorable price momentum, rendering them appealing options for growth-focused investors.

Fundamental Strength Evaluation

ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) shows very good fundamental traits that match CAN SLIM needs closely. The company's financial condition and profitability measures are particularly notable in the competitive Hotels, Restaurants & Leisure industry. Based on the detailed fundamental analysis, ATAT gets a total rating of 8 out of 10, with especially high ratings in profitability (9/10) and financial health (9/10). These solid fundamentals offer the necessary base that CAN SLIM investors look for when finding companies with lasting growth potential.

Growth Measures Match

The company's growth path satisfies several CAN SLIM criteria at once. Current quarterly performance indicates notable momentum, while past growth shows the steadiness that growth investors favor:

• Quarterly EPS growth of 28.4% year-over-year is higher than the CAN SLIM limit of 20-25%
• Quarterly revenue growth of 37.4% is above the suggested 25% minimum
• Three-year EPS compound annual growth of 110% is much greater than the 25-50% target range
• Return on Equity of 41.9% is much better than the 10% minimum requirement

These growth measures reflect the "C" and "A" parts of CAN SLIM, showing both current speed and maintained annual earnings increases that William O'Neil found important for market-leading stocks.

Technical Situation and Market Position

From a technical viewpoint, ATAT shows various traits that CAN SLIM investors appreciate. The stock keeps a high relative strength of 87.78, indicating it does better than almost 88% of all stocks in the market and situates it well above the 75% level suggested by O'Neil. This matches the "L" criterion for leading rather than trailing status. While the technical analysis indicates some recent consolidation with a rating of 5 out of 10, the long-term pattern is still positive, and the stock keeps trading in the higher part of its 52-week range.

Institutional Backing and Financial Condition

Institutional ownership is at 69.9%, fitting easily within the CAN SLIM preferred range below 85% where institutions are involved but still can build larger positions. The company's balance sheet quality is especially remarkable, with a debt-to-equity ratio of only 0.02, much lower than the maximum level of 2.0 suggested by the methodology. This careful financial setup supports the "S" criterion about supply factors and lowers financial risk for investors.

Industry Standing and New Development Profile

As a lifestyle hotel brand developer running 834 hotels in 151 Chinese cities, ATAT exemplifies the kind of original company that CAN SLIM looks for. The company's varied brand collection, including Atour, Atour S, and theme-based hotels focused on music, basketball, and literature, shows the "N" aspect of new products and services that can fuel growth. The company's recent IPO in November 2022 also fits the liking for newer companies with modern methods to their markets.

Market Situation Evaluation

The present market setting offers a varied context for CAN SLIM application. While the S&P 500 indicates a positive short-term pattern, the neutral long-term pattern implies careful stock selection is still vital. ATAT's high relative performance in this time suggests it might have the durability that CAN SLIM methodology favors during unclear market periods.

For investors wanting to find more companies that satisfy CAN SLIM criteria, our pre-configured screening tool supplies continuous screening using these parameters.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance does not guarantee future results, and all investments carry risk including potential loss of principal.