NASDAQ:ATAT, a strong growth stock, setting up for a breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ATOUR LIFESTYLE HOLDINGS-ADR showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Evaluating Growth: NASDAQ:ATAT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ATAT has received a 8 out of 10:

• ATAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 583.46%, which is quite impressive.
• The Revenue has grown by 106.19% in the past year. This is a very strong growth!
• Measured over the past years, ATAT shows a very strong growth in Revenue. The Revenue has been growing by 43.88% on average per year.
• Based on estimates for the next years, ATAT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.00% on average per year.
• ATAT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.20% yearly.

Understanding NASDAQ:ATAT's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:ATAT has earned a 8 out of 10:

• An Altman-Z score of 5.46 indicates that ATAT is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.46, ATAT belongs to the best of the industry, outperforming 90.23% of the companies in the same industry.
• The Debt to FCF ratio of ATAT is 0.05, which is an excellent value as it means it would take ATAT, only 0.05 years of fcf income to pay off all of its debts.
• ATAT has a better Debt to FCF ratio (0.05) than 95.49% of its industry peers.
• A Debt/Equity ratio of 0.03 indicates that ATAT is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.03, ATAT belongs to the top of the industry, outperforming 86.47% of the companies in the same industry.
• ATAT's Current ratio of 1.99 is amongst the best of the industry. ATAT outperforms 84.21% of its industry peers.
• Looking at the Quick ratio, with a value of 1.92, ATAT belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.

Evaluating Profitability: NASDAQ:ATAT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ATAT has achieved a 8:

• With an excellent Return On Assets value of 14.30%, ATAT belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 39.04%, ATAT belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 16.88%, ATAT belongs to the top of the industry, outperforming 86.47% of the companies in the same industry.
• The 3 year average ROIC (9.26%) for ATAT is below the current ROIC(16.88%), indicating increased profibility in the last year.
• ATAT's Profit Margin of 17.18% is amongst the best of the industry. ATAT outperforms 90.98% of its industry peers.
• The Operating Margin of ATAT (20.97%) is better than 78.95% of its industry peers.
• In the last couple of years the Operating Margin of ATAT has grown nicely.
• The Gross Margin of ATAT (68.47%) is better than 80.45% of its industry peers.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:ATAT is 7:

Besides having an excellent technical rating, ATAT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 26.93, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of ATAT for a complete fundamental analysis.

For an up to date full technical analysis you can check the technical report of ATAT

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.