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

The CAN SLIM funding methodology, created by William O’Neil, integrates elementary and technical evaluation to seek out high-growth shares possessing stable momentum potential. This organized methodology assesses firms utilizing seven predominant standards symbolized by the acronym: Current quarterly earnings progress, Annual earnings will increase, New services or products, Supply and demand dynamics, Leadership standing amongst friends, Institutional sponsorship, and total Market course. Stocks satisfying these strict requirements often present each stable enterprise fundamentals and favorable worth momentum, rendering them interesting choices for growth-focused buyers.

Fundamental Strength Evaluation

ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) exhibits superb elementary traits that match CAN SLIM wants intently. The firm’s monetary situation and profitability measures are significantly notable within the aggressive Hotels, Restaurants & Leisure business. Based on the detailed elementary evaluation, ATAT will get a complete ranking of 8 out of 10, with particularly excessive scores in profitability (9/10) and monetary well being (9/10). These stable fundamentals provide the mandatory base that CAN SLIM buyers search for when discovering firms with lasting progress potential.

Growth Measures Match

The firm’s progress path satisfies a number of CAN SLIM standards directly. Current quarterly efficiency signifies notable momentum, whereas previous progress exhibits the stability that progress buyers favor:

• Quarterly EPS progress of 28.4% year-over-year is greater than the CAN SLIM restrict of 20-25%
• Quarterly income progress of 37.4% is above the prompt 25% minimal
• Three-year EPS compound annual progress of 110% is way better than the 25-50% goal vary
• Return on Equity of 41.9% is a lot better than the ten% minimal requirement

These progress measures replicate the “C” and “A” elements of CAN SLIM, displaying each present velocity and maintained annual earnings will increase that William O’Neil discovered necessary for market-leading shares.

Technical Situation and Market Position

From a technical viewpoint, ATAT exhibits numerous traits that CAN SLIM buyers recognize. The inventory retains a excessive relative energy of 87.78, indicating it does higher than nearly 88% of all shares available in the market and situates it properly above the 75% stage prompt by O’Neil. This matches the “L” criterion for main relatively than trailing standing. While the technical evaluation signifies some current consolidation with a ranking of 5 out of 10, the long-term sample continues to be optimistic, and the inventory retains buying and selling within the greater a part of its 52-week vary.

Institutional Backing and Financial Condition

Institutional possession is at 69.9%, becoming simply inside the CAN SLIM most well-liked vary beneath 85% the place establishments are concerned however nonetheless can construct bigger positions. The firm’s steadiness sheet high quality is particularly exceptional, with a debt-to-equity ratio of solely 0.02, a lot decrease than the utmost stage of two.0 prompt by the methodology. This cautious monetary setup helps the “S” criterion about provide components and lowers monetary threat for buyers.

Industry Standing and New Development Profile

As a life-style lodge model developer working 834 resorts in 151 Chinese cities, ATAT exemplifies the sort of authentic firm that CAN SLIM seems for. The firm’s different model assortment, together with Atour, Atour S, and theme-based resorts targeted on music, basketball, and literature, exhibits the “N” facet of recent services and products that may gas progress. The firm’s current IPO in November 2022 additionally matches the liking for newer firms with fashionable strategies to their markets.

Market Situation Evaluation

The current market setting affords a different context for CAN SLIM software. While the S&P 500 signifies a optimistic short-term sample, the impartial long-term sample implies cautious inventory choice continues to be important. ATAT’s excessive relative efficiency on this time suggests it may need the sturdiness that CAN SLIM methodology favors throughout unclear market intervals.

For buyers wanting to seek out extra firms that fulfill CAN SLIM standards, our pre-configured screening software provides steady screening utilizing these parameters.

Disclaimer: This evaluation is for informational functions solely and doesn’t represent funding recommendation, suggestion, 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 choices. Past efficiency doesn’t assure future outcomes, and all investments carry threat together with potential lack of principal.