Jd Sports Is Undervalued

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Jd Sports Is Undervalued

Jd Sports Is Undervalued By 62%

JD Sports is a big name in the FTSE 100 index and is involved in the business of sports clothing, footwear & accessories.

Since the start of 2025, the JD Sports (JD) stock is down by 20%. Meanwhile, the firm's P/E ratio is only around 12. This means the JD Sports is technically undervalued by almost 62%.

Jd Sports Faces Weak Sales Growth

So, for those investors who want to get the best value of their investment, its worth looking into JD Sports stock.

However, we must also remember that the JD Sports stock is in a downtrend. According to experts, the key reason for this is the weak sales growth of JD Sports.

The company recently announced that its sales growth is only 3.4%. Although it is positive, it is also just slightly above the inflation levels. On top of that, the firm only managed to achieve that after opening new stores.

As for the LFL sales of JD Sports, it has declined by 1.5%. If we look around, this trend is also seen at Greggs, B&M European Value Retail, and Associated British Foods.

Also, the company is facing fierce competition from Nike, which is also affecting its bottom line. But even for Nike, things aren't that good which is yet another reason why JD Sports is also underperforming.

Just think about it - If a company like Nike is struggling to sell trainers, then how a FTSE 100 firm can sell it easily.

With all things considered, JD Sports is a good stock to consider. Although things are tough, the company is making profits and the sales growth is also positive.

So once the economic conditions improve and the retail sales also improve in the UK, JD Sports will make a comeback for sure.

All of this makes a strong case to consider buying JD Sports at the current levels. Any more dips in the JD Sports stock price can also be viewed as a buying opportunity.

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