Why is Birkenstock Holding plc (BIRK) One of the Best Strong Buy Stocks to Invest in Right Now?

Birkenstock Holding plc (NYSE:BIRK) is one of the best strong buy stocks to invest in right now. Bernstein cut the price target on Birkenstock Holding plc (NYSE:BIRK) to $55 from $63 on December 30, keeping a Market Perform rating on the shares and telling investors that the company may experience “significant headwinds” in fiscal 2026. It explained that Birkenstock Holding plc (NYSE:BIRK) has guided gross margin headwinds of 200 basis points, which effectively halves the earnings contribution of any sales growth when combined with a higher anticipated tax rate.

The rating update came after Birkenstock Holding plc (NYSE:BIRK) announced results for fiscal Q4 and fiscal year ended September 30, 2025, on December 18, reporting fiscal 2025 revenue growth of 16% and 18% on a constant currency basis, surpassing its guidance of 15-17%. These positive trends were supported by solid consumer demand across all segments, categories, and channels. Adjusted EBITDA margin for the year was 31.8%, reaching the high end of the company’s guidance range of 31.3-31.8%, despite currency translation and tariff headwinds of 70 basis points for the fiscal year.

Birkenstock Holding plc (NYSE:BIRK) also provided guidance for the fiscal year ending September 30, 2026, and expects revenue growth in constant currency of 13-15%. This translates into reported revenue of EUR 2.30-2.35 billion and growth of 10-12% with a currency translation headwind of around 300-350 basis points.

Birkenstock Holding plc (NYSE:BIRK) is involved in the manufacture and sale of footbed-based products, and operates through the following geographical segments: Americas, Europe, and APMA.

While we acknowledge the potential of BIRK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BIRK and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.