Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

June 6, 2025

Try Small-Cap Stock Birkenstock On For Size

Image of woman at desk with a take-out coffee cup in front of her

Investors looking for a safe harbour in the current market storm might want to consider small-cap security %Birkenstock (NYSE: $BIRK).

The German sandal maker has been a going concern since 1774. Yet it only went public 18 months ago, listing shares on the New York Stock Exchange in the autumn of 2023.

For investors nervous about U.S. markets entering a correction and technology stocks falling sharply, Birkenstock offers a margin of safety.

First, the company is based outside the U.S. in Germany. Second, the company is about as low-tech as it gets.

Despite being in continuous operation for 250 years, Birkenstock sandals have changed little over the years and still feature their distinctive cork soles.

Plus, most of Birkenstock’s sales come from outside the American market, insulating it from a downturn in the U.S. economy.

The company’s fastest growing market is in Asia, where sales rose 47% year-over-year in the final quarter of last year.

Birkenstock’s earnings since going public have been strong and the company has forecast sales growth of 15% to 17% on a constant currency basis this year.

Birkenstock’s growth has been powered by a focus on building up its direct-to-consumer sales channel alongside its whole distributors.

Management has also made paying down debt a priority, ending 2024 with net leverage of 1.9 times earnings, down from 2.6 times in 2023.

Yet for all its success, Birkenstock has a market capitalization of $8.64 billion U.S., placing it in the small-cap camp.

Analysts remain extremely bullish on BIRK stock. Among 11 Wall Street analysts who cover the stock, 10 rate it a buy while one says it’s a hold.

The average price target on Birkenstock of $69.20 U.S. is 50% higher than where the shares currently trade.

With the stock at $46 U.S. a share and near a 52-week low, now might be an opportune time for investors to try Birkenstock on for size.

Article link: http://www.yolowire.com/latestarticles/15600/try-small-cap-stock-birkenstock-on-for-size