ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) Shows Strong CAN SLIM Investment Profile

The CAN SLIM funding methodology, created by William O’Neil, integrates elementary and technical evaluation to search out high-growth market leaders. This methodical course of assesses firms utilizing seven fundamental elements represented by the acronym: Current quarterly earnings progress, Annual earnings will increase, New services or products, Supply and demand dynamics, Leadership standing, Institutional sponsorship, and Market route. People utilizing this methodology search for firms with stable earnings momentum, new enterprise fashions, and technical well being throughout good market intervals.

Current Quarterly Performance

ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) reveals the form of present quarterly efficiency that CAN SLIM customers search for. The system focuses on firms with quickening earnings and gross sales progress of their newest quarters, as this could sign rising enterprise momentum.

• Quarterly EPS progress of 28.4% year-over-year
• Quarterly income progress of 37.4% year-over-year

These numbers are effectively above the CAN SLIM minimal of 20-25% quarterly progress, indicating the corporate is present process vital enterprise acceleration. This issue is essential as a result of it spots firms whereas their progress paths are nonetheless getting higher, not after they’ve already reached their highest level.

Annual Earnings Strength

In addition to quarterly efficiency, CAN SLIM calls for regular annual earnings progress to substantiate firms should not simply having short-term surges. The methodology seems to be for confirmed progress traits as a substitute of single-quarter successes.

• Three-year EPS progress fee of 110.0%
• Return on Equity of 41.9%

The giant three-year progress reveals lasting growth, and the excellent ROE alerts efficient use of shareholder cash. These measurements meet the “A” a part of CAN SLIM by revealing the corporate has stored up stable annual earnings progress as a substitute of relying on transient modifications.

Leadership and Relative Strength

Market management is a elementary a part of the CAN SLIM methodology, with the system preferring shares that show relative energy in comparison with their business opponents and the broader market. This technical half makes certain investor consideration is validating the basic narrative.

• Relative energy score of 85.5
• Technical score of 9 out of 10

The excessive relative energy reveals ATAT is doing higher than about 85% of all shares, inserting it available in the market management group that CAN SLIM favors. This technical affirmation implies institutional traders are acknowledging the corporate’s elementary qualities, creating the supply-demand distinction that continuously comes earlier than extra worth good points.

Financial Health and Institutional Support

CAN SLIM focuses on firms with sound monetary bases and rising institutional consideration, whereas steering away from these the place institutional possession is just too excessive.

• Debt-to-equity ratio of 0.02
• Institutional possession of 69.9%

The very low debt stage affords monetary room and lowers threat, and the institutional possession proportion is within the preferrred zone the place skilled traders are concerned however haven’t fully taken up all out there shares. This equilibrium permits for additional institutional shopping for, which can provide continued upward worth strain.

Complete Analysis View

The firm’s elementary evaluation reveals an general score of 8 out of 10, with particularly excessive marks in profitability (9/10) and monetary well being (9/10). The technical evaluation additionally signifies well being with a 9 out of 10 score, though the setup high quality implies traders may discover higher entry factors throughout pullbacks.

As a way of life lodge model operator in China with 834 accommodations in 151 cities, ATAT is an instance of the brand new enterprise mannequin that CAN SLIM customers continuously search. The firm’s theme-based lodge concepts and rising presence match the “New” issue, which seems to be for firms introducing unique strategies to established industries.

Finding Other Possibilities

For folks wanting to search out different firms that match CAN SLIM elements, the pre-configured screener affords a starting for recognizing doable candidates. Frequent screening with these settings may help customers stay knowledgeable about new progress leaders that present the basic and technical traits the strategy focuses on.

Disclaimer: This evaluation is for informational functions solely and doesn’t represent funding recommendation, advice, or endorsement of any safety. Investors ought to conduct their very own analysis and seek the advice of with monetary advisors earlier than making funding selections. Past efficiency doesn’t assure future outcomes.