Image Source: PixabayAt the moment, the Zacks Leisure and Recreation Services Industry is in the top 7% out of 250 Zacks industries. Furthermore, a few Chinese ADRs (American Depository Receipts) are standing out among this top-rated industry in particular.  Starting to benefit from the holiday travel season, here’s a look at two of these leisure stocks that currently boast a Zacks Rank #1 (Strong Buy).

Atour Lifestyle Holdings – ATAT
 Operating the largest midscale hotel chain in China, Atour Lifestyle Holdings (ATAT – Free Report) is worthy of investors’ consideration. ATAT shares are attractive in terms of growth and momentum as Atour reported Q3 results last Tuesday with considerable expansion on its top and bottom lines.Atour’s Q3 earnings of $0.39 a share increased 44% from EPS of $0.27 in the prior-year quarter. This came on Q3 sales of $270.55 million, a 52% increase from $177.37 million a year ago. Furthermore, Atour beat Q3 EPS and sales estimates by 2% respectively with ATAT being one of the hottest IPOs in recent years after going public at the end of 2022.
Image Source: Zacks Investment Research

Trip.com – TCOM 
 Based in Shanghai, Trip.com (TCOM – Free Report) is another Chinese leisure and recreation services company whose stock could have more upside. Offering a one-stop booking service for travel-related packages, Trip.com impressively exceeded Q3 EPS expectations by 37% last Monday with earnings at $1.25 per share compared to Zacks estimates of $0.91.Trip.com’s EPS spiked from $1.00 in the comparative quarter while Q3 sales of $2.26 billion rose 20% and exceeded estimates of $2.19 billion. TCOM has been a top-performing stock this year, soaring over +70% in 2024 with Trip.com now surpassing earnings expectations for nine consecutive quarters as shown in the EPS surprise chart below.
Image Source: Zacks Investment ResearchSeeing strong travel demand for the peak holiday season, earnings estimate revisions are noticeably higher for Trip.com over the last 60 days and are nicely up in the last week.
Image Source: Zacks Investment Research

Bottom Line
 Like Trip.com, Atour Lifestyle Holdings is benefiting from a positive trend of earnings estimate revisions which suggests their stellar price performances could continue. That said, it would be no surprise if these top leisure stocks keep soaring through the holiday season.More By This Author:It’s Time To Look At 3 High-Yield Large-Cap Energy Stocks
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