Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) Hit a 52 Week Excessive, Can the Run Proceed?

Shares of Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) have been sturdy performers currently, with the fill up 10.7% over the previous month. The inventory hit a brand new 52-week excessive of $42.34 within the earlier session. Atour Lifestyle Holdings Limited Sponsored ADR has gained 50.6% because the begin of the yr in comparison with the 4.9% transfer for the Zacks Consumer Discretionary sector and the -2.5% return for the Zacks Leisure and Recreation Services trade.

What’s Driving the Outperformance?

The inventory has an amazing report of optimistic earnings surprises, because it hasn’t missed our earnings consensus estimate in any of the final 4 quarters. In its final earnings report on August 26, 2025, Atour Lifestyle Holdings Limited Sponsored ADR reported EPS of $0.42 versus consensus estimate of $0.41 whereas it beat the consensus income estimate by 2.44%.

For the present fiscal yr, Atour Lifestyle Holdings Limited Sponsored ADR is anticipated to submit earnings of $1.61 per share on $1.37 in revenues. This represents a 24.81% change in EPS on a 36.2% change in revenues. For the following fiscal yr, the corporate is anticipated to earn $1.95 per share on $1.75 in revenues. This represents a year-over-year change of 20.81% and 27.57%, respectively.

Valuation Metrics

Atour Lifestyle Holdings Limited Sponsored ADR could also be at a 52-week excessive proper now, however what may the long run maintain for the inventory? A key side of this query is looking at valuation metrics with a purpose to decide if the corporate has run forward of itself.

On this entrance, we will take a look at the Zacks Style Scores, as they supply traders with an extra strategy to type by way of shares (past wanting on the Zacks Rank of a safety). The particular person model scores for Value, Growth, Momentum and the mixed VGM Score run from A by way of F. Investors ought to contemplate the model scores a precious device that may assist you to choose probably the most acceptable Zacks Rank shares based mostly on their particular person funding model.

Atour Lifestyle Holdings Limited Sponsored ADR has a Value Score of C. The inventory’s Growth and Momentum Scores are A and B, respectively, giving the corporate a VGM Score of A.

In phrases of its worth breakdown, the inventory presently trades at 25.2X present fiscal yr EPS estimates, which is a premium to the peer trade common of 20.2X. On a trailing money circulation foundation, the inventory presently trades at 30.5X versus its peer group’s common of seven.1X. Additionally, the inventory has a PEG ratio of 1.3. This is not sufficient to place the corporate within the high echelon of all shares we cowl from a worth perspective.

Zacks Rank

We additionally want to think about the inventory’s Zacks Rank, as this supersedes any pattern on the model rating entrance. Fortunately, Atour Lifestyle Holdings Limited Sponsored ADR presently has a Zacks Rank of #2 (Buy) because of favorable earnings estimate revisions from overlaying analysts.

Since we advocate that traders choose shares carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it seems as if Atour Lifestyle Holdings Limited Sponsored ADR passes the take a look at. Thus, it appears as if Atour Lifestyle Holdings Limited Sponsored ADR shares may have potential within the weeks and months to come back.

How Does ATAT Stack Up to the Competition?

Shares of ATAT have been hovering, and the corporate nonetheless seems to be an honest selection, however what about the remainder of the trade? One trade peer that appears good is Life Time Group Holdings, Inc. (LTH). LTH has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.

Earnings had been sturdy final quarter. Life Time Group Holdings, Inc. beat our consensus estimate by 20.59%, and for the present fiscal yr, LTH is anticipated to submit earnings of $1.66 per share on income of $2.98 billion.

Shares of Life Time Group Holdings, Inc. have gained 1.6% over the previous month, and presently commerce at a ahead P/E of 17.57X and a P/CF of 12.08X.

The Leisure and Recreation Services trade could rank within the backside 59% of all of the industries we’ve in our universe, however there nonetheless seems like there are some good tailwinds for ATAT and LTH, even past their very own strong basic scenario.

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This article originally published on Zacks Investment Research (zacks.com).

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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.