A Looming Breakout Is Just One Reason To Track This Hot IPO Stock

Outrunning Deckers Outdoor (DECK), On Holding (ONON) and Skechers (SKX), sandal king Birkenstock (BIRK) ranks No. 1 in the apparel and shoes manufacturing industry group. Birkenstock stock has high ratings.

Sporting a 98 Composite Rating, Birkenstock stock earns a spot on both IPO Leaders and IBD Sector Leaders, our most stringent screen. It has also shown strong institutional demand as it laces up a new buy point.

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Growth Drives Demand For Birkenstock Stock

Worn by the likes of Apple (AAPL) cofounder Steve Jobs and Kim Kardashian, Birkenstock sandals stand as an iconic brand that traces its roots back to the earliest documented mention of Johannes Birkenstock (1749-1812) in 1774. Fast forward roughly 200 years, and the Birkenstock sandal made its debut in 1964. To honor the brand’s heritage, Birkenstock launched the 1774 line of sandals in 2020.

The stock went public in October of 2023.

On Dec. 17, the company reported its performance for the fourth quarter and fiscal year ended Sept. 30, posting accelerating growth for both earnings and sales. Revenue jumped 28% to $507.5 million. Earnings spiked 128% compared to the prior-year quarter, to 32 cents per share.

For the full fiscal year, analysts forecast 42% earnings growth to $1.81 per share.

That robust performance is driving demand for shares. Birkenstock sports an A Accumulation/Distribution Rating and a 1.6 up/down volume ratio.

Birkenstock Takes Positive, Telltale Step

Since its IPO, Birkenstock stock has seen its share of stumbles. But the sandals maker has also taken one positive step that could bode well for investors.

While forming its current cup-with-handle formation, Birkenstock stock reset its base count by undercutting the low it is prior pattern. Such action often lays the groundwork for a fresh new climb.

Another sign of positive technical action is how Birkenstock’s 21-day exponential moving average shot back above its longer-term 50-day line early last month. Also note how the 50-day benchmark stands poised to overtake the 200-day moving average.

As Birkenstock continues to work on its cup with handle, the buy point is 62.45.

In a promising sign on the first trading day of the New Year, the stock found support and bounced off its 21-day line.

Up over 1% early Friday, Birkenstock stands 7% shy of a breakout.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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