Is ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) a Minervini-style stock?

Growth 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. Investors should of course do their own research, but we spotted ATOUR LIFESTYLE HOLDINGS-ADR showing up in our Minervini growth screen, so it may be worth spending some more time on it.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for ATAT:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

What matters for high growth investors.

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. ATAT boasts a 7 out of 10:

Explosive Earnings Growth

• ATAT has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 41.69% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• ATAT shows accelerating EPS growth: when comparing the current Q2Q growth of 41.69% to the previous quarter Q2Q growth of 31.11%, we see the growth rate improving.
• Over the past year, ATAT has demonstrated 172.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• ATAT has demonstrated strong q2q revenue growth of 46.71%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• With impressive 1-year revenue growth of 76.11%, ATAT showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• ATAT has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Profitability & Financial Strength

• ATAT has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• The profit margin of ATAT has seen steady growth over the past year, signaling improved profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, ATAT demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• ATAT has achieved an impressive Return on Equity (ROE) of 44.79%, showcasing its ability to generate favorable returns for shareholders.
• ATAT maintains a healthy Debt-to-Equity ratio of 0.04. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.

Institutional Confidence & Market Strength

• With 61.9% of the total shares held by institutional investors, ATAT showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• ATAT has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 94.59 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Why is ATAT a setup?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, ATAT has a 4 as its setup rating:

ATAT has an excellent technical rating, but the quality of the setup is only medium at the moment. Prices have been consolidating lately.

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

Final Thoughts

It looks like ATOUR LIFESTYLE HOLDINGS-ADR meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

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.