Is ATOUR LIFESTYLE HOLDINGS-ADR (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.

How We Gauge Growth 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.
• Looking at the last year, ATAT shows a very strong growth in Revenue. The Revenue has grown by 76.11%.
• The Revenue has been growing by 43.88% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, ATAT will show a very strong growth in Earnings Per Share. The EPS will grow by 31.43% on average per year.
• The Revenue is expected to grow by 35.56% on average over the next years. This is a very strong growth

A Closer Look at Health for NASDAQ:ATAT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ATAT has received a 8 out of 10:

• An Altman-Z score of 6.16 indicates that ATAT is not in any danger for bankruptcy at the moment.
• ATAT has a better Altman-Z score (6.16) than 91.11% of its industry peers.
• ATAT has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 0.06, ATAT belongs to the best of the industry, outperforming 94.81% of the companies in the same industry.
• A Debt/Equity ratio of 0.04 indicates that ATAT is not too dependend on debt financing.
• ATAT has a better Debt to Equity ratio (0.04) than 88.15% of its industry peers.
• ATAT has a Current ratio of 1.97. This is amongst the best in the industry. ATAT outperforms 85.93% of its industry peers.
• Looking at the Quick ratio, with a value of 1.92, ATAT belongs to the top of the industry, outperforming 85.93% of the companies in the same industry.

How do we evaluate the 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:

• ATAT has a Return On Assets of 16.16%. This is amongst the best in the industry. ATAT outperforms 94.81% of its industry peers.
• ATAT has a better Return On Equity (44.79%) than 94.07% of its industry peers.
• With an excellent Return On Invested Capital value of 19.32%, ATAT belongs to the best of the industry, outperforming 91.85% of the companies in the same industry.
• The last Return On Invested Capital (19.32%) for ATAT is above the 3 year average (9.25%), which is a sign of increasing profitability.
• The Profit Margin of ATAT (17.47%) is better than 91.11% of its industry peers.
• With an excellent Operating Margin value of 21.33%, ATAT belongs to the best of the industry, outperforming 80.74% of the companies in the same industry.
• ATAT's Operating Margin has improved in the last couple of years.
• ATAT has a Gross Margin of 81.83%. This is amongst the best in the industry. ATAT outperforms 96.30% of its industry peers.

Why is NASDAQ:ATAT a 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:

ATAT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 30.58, a Stop Loss order could be placed below this zone.

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

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.