Back to top

Image: Bigstock

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

Read MoreHide Full Article

Shares of Atour Lifestyle Holdings Limited Sponsored ADR (ATAT - Free Report) have been strong performers lately, with the stock up 10.7% over the past month. The stock hit a new 52-week high of $42.34 in the previous session. Atour Lifestyle Holdings Limited Sponsored ADR has gained 50.6% since the start of the year compared to the 4.9% move for the Zacks Consumer Discretionary sector and the -2.5% return for the Zacks Leisure and Recreation Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 26, 2025, Atour Lifestyle Holdings Limited Sponsored ADR reported EPS of $0.42 versus consensus estimate of $0.41 while it beat the consensus revenue estimate by 2.44%.

For the current fiscal year, Atour Lifestyle Holdings Limited Sponsored ADR is expected to post 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 next fiscal year, the company is expected 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 may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

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

In terms of its value breakdown, the stock currently trades at 25.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.2X. On a trailing cash flow basis, the stock currently trades at 30.5X versus its peer group's average of 7.1X. Additionally, the stock has a PEG ratio of 1.3. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Atour Lifestyle Holdings Limited Sponsored ADR currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Atour Lifestyle Holdings Limited Sponsored ADR passes the test. Thus, it seems as though Atour Lifestyle Holdings Limited Sponsored ADR shares could have potential in the weeks and months to come.

How Does ATAT Stack Up to the Competition?

Shares of ATAT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Life Time Group Holdings, Inc. (LTH - Free Report) . 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 were strong last quarter. Life Time Group Holdings, Inc. beat our consensus estimate by 20.59%, and for the current fiscal year, LTH is expected to post earnings of $1.66 per share on revenue of $2.98 billion.

Shares of Life Time Group Holdings, Inc. have gained 1.6% over the past month, and currently trade at a forward P/E of 17.57X and a P/CF of 12.08X.

The Leisure and Recreation Services industry may rank in the bottom 59% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ATAT and LTH, even beyond their own solid fundamental situation.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Life Time Group Holdings, Inc. (LTH) - free report >>

Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) - free report >>

Published in