Atour Lifestyle Holdings (NASDAQ:ATAT): A CAN SLIM Candidate
By Mill Chart
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Atour Lifestyle Holdings (NASDAQ:ATAT) is a Chinese hospitality company specializing in lifestyle hotel brands. The firm operates a network of 834 hotels across 151 cities in China, with a portfolio that includes Atour, Atour S, Atour X, and other themed accommodations.
The CAN SLIM investing system, developed by William O’Neil, combines fundamental and technical analysis to identify high-growth stocks with strong momentum. The strategy focuses on companies with accelerating earnings, institutional sponsorship, and leadership in their industry.
Why Atour Lifestyle Holdings (NASDAQ:ATAT) Fits the CAN SLIM Criteria
C – Current Earnings Growth
ATAT reported a 48.7% year-over-year EPS growth in its latest quarter, well above the CAN SLIM minimum threshold of 20%. Revenue growth was also strong at 38.5%, indicating robust demand for its hospitality services.
A – Annual Earnings Growth
The company’s 3-year EPS growth stands at 110%, far exceeding the 25% benchmark. This consistent growth suggests a strong business model and effective execution.
N – New Products & Market Leadership
ATAT has expanded its footprint with themed hotels, differentiating itself in China’s competitive hospitality sector. The stock has shown relative strength, outperforming 77% of its industry peers.
S – Supply & Demand
With a low debt-to-equity ratio of 0.02, ATAT maintains a healthy balance sheet. The stock also benefits from solid liquidity, with an average daily trading volume of 1.49 million shares.
L – Market Leader
ATAT’s relative strength score of 83.14 places it in the top 17% of all stocks, a key trait for CAN SLIM candidates.
I – Institutional Sponsorship
Institutional ownership stands at 61.9%, indicating strong interest from professional investors without being overly concentrated.
M – Market Direction
While ATAT’s long-term trend is negative, aligning with the broader S&P 500, its fundamentals suggest potential for a turnaround if market conditions improve.
Fundamental & Technical Overview
Fundamental Analysis
ATAT scores a 7 out of 10 in fundamental health, with strong profitability metrics:
- ROE of 43.1% (top 10% of industry peers)
- Profit margin of 17.6% (outperforming 90% of competitors)
- Revenue growth of 55.3% YoY
Technical Analysis
The stock’s technical rating is 2 out of 10, reflecting recent weakness. However, it shows a setup rating of 6, suggesting consolidation near support at $22.74. Resistance is seen at $26.32–$26.43.
Conclusion
Atour Lifestyle Holdings (NASDAQ:ATAT) meets several CAN SLIM criteria, particularly in earnings growth, profitability, and relative strength. While short-term technicals are weak, the company’s fundamentals make it a candidate for watchlists.
