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

Core Viewpoint - Birkenstock Holding plc (NYSE:BIRK) is currently viewed as a strong buy stock, despite facing potential challenges in fiscal 2026, including a reduction in price target from $63 to $55 by Bernstein [1][2]. Financial Performance - For fiscal Q4 and the year ending September 30, 2025, Birkenstock reported a revenue growth of 16%, exceeding its guidance of 15-17%, with an adjusted EBITDA margin of 31.8%, reaching the high end of its guidance range [2]. - The company anticipates revenue growth of 13-15% in constant currency for the fiscal year ending September 30, 2026, translating to reported revenue of EUR 2.30-2.35 billion, with a currency translation headwind of approximately 300-350 basis points [3]. Market Challenges - Birkenstock is expected to face gross margin headwinds of 200 basis points, which could significantly impact earnings growth, compounded by a higher anticipated tax rate [1].