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

Company Performance - Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) has seen a stock increase of 10.7% over the past month, reaching a new 52-week high of $42.34 [1] - The stock has gained 50.6% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector's 4.9% increase and the Zacks Leisure and Recreation Services industry's decline of 2.5% [1] Earnings and Revenue - The company has a strong record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - In the latest earnings report on August 26, 2025, ATAT reported an EPS of $0.42, beating the consensus estimate of $0.41, and exceeded revenue estimates by 2.44% [2] - For the current fiscal year, ATAT is expected to post earnings of $1.61 per share on revenues of $1.37 billion, reflecting a 24.81% change in EPS and a 36.2% change in revenues [3] - For the next fiscal year, the expected earnings are $1.95 per share on revenues of $1.75 billion, indicating a year-over-year change of 20.81% in EPS and 27.57% in revenues [3] Valuation Metrics - The stock currently trades at 25.2 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 20.2 times [7] - On a trailing cash flow basis, ATAT trades at 30.5 times, significantly higher than the peer group's average of 7.1 times [7] - The stock has a PEG ratio of 1.3, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - ATAT holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of C, a Growth Score of A, and a Momentum Score of B, resulting in a combined VGM Score of A [6][9] Industry Comparison - The Leisure and Recreation Services industry ranks in the bottom 59% of all industries, but ATAT and its peer, Life Time Group Holdings, Inc. (LTH), show potential for growth [12] - LTH has a Zacks Rank of 1 (Strong Buy) and has reported strong earnings, with expected earnings of $1.66 per share on revenues of $2.98 billion for the current fiscal year [10][11]