Atour Lifestyle (ATAT) ZACKS·2024-11-21 18:00Core Viewpoint - Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to stock price movements based on their buying or selling activities [5]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Atour Lifestyle Holdings Limited indicate an improvement in the company's underlying business, suggesting that investors may push the stock price higher [6]. Earnings Estimate Revisions - For the fiscal year ending December 2024, Atour Lifestyle Holdings Limited is expected to earn $1.23 per share, reflecting a 33.7% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 11.9% [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 positions Atour Lifestyle Holdings Limited in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [12].