Is NASDAQ:ATAT on the Verge of a Major Breakout as a Strong Growth Stock?

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.

Assessing Growth Metrics for NASDAQ:ATAT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ATAT boasts a 8 out of 10:

• ATAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 171.84%, which is quite impressive.
• The Revenue has grown by 76.11% 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.
• The Earnings Per Share is expected to grow by 31.17% on average over the next years. This is a very strong growth
• Based on estimates for the next years, ATAT will show a very strong growth in Revenue. The Revenue will grow by 35.09% on average per year.

How do we evaluate the Health for NASDAQ:ATAT?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ATAT, the assigned 8 reflects its health status:

• ATAT has an Altman-Z score of 5.60. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
• ATAT's Altman-Z score of 5.60 is amongst the best of the industry. ATAT outperforms 89.31% of its industry peers.
• The Debt to FCF ratio of ATAT is 0.06, which is an excellent value as it means it would take ATAT, only 0.06 years of fcf income to pay off all of its debts.
• ATAT has a Debt to FCF ratio of 0.06. This is amongst the best in the industry. ATAT outperforms 95.42% of its industry peers.
• A Debt/Equity ratio of 0.04 indicates that ATAT is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.04, ATAT belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
• The Current ratio of ATAT (1.97) is better than 84.73% of its industry peers.
• Looking at the Quick ratio, with a value of 1.92, ATAT belongs to the top of the industry, outperforming 84.73% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:ATAT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ATAT scores a 8 out of 10:

• The Return On Assets of ATAT (16.16%) is better than 95.42% of its industry peers.
• The Return On Equity of ATAT (44.79%) is better than 94.66% of its industry peers.
• ATAT has a Return On Invested Capital of 19.32%. This is amongst the best in the industry. ATAT outperforms 92.37% of its industry peers.
• The 3 year average ROIC (9.25%) for ATAT is below the current ROIC(19.32%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 17.47%, ATAT belongs to the best of the industry, outperforming 92.37% of the companies in the same industry.
• ATAT's Operating Margin of 21.33% is amongst the best of the industry. ATAT outperforms 80.92% of its industry peers.
• In the last couple of years the Operating Margin of ATAT has grown nicely.
• The Gross Margin of ATAT (81.83%) is better than 96.18% of its industry peers.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:ATAT exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is only medium, ATAT does present a nice setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at 25.82, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

Our latest full technical report of ATAT contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.