Should You Buy Jd Sports Shares

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Should You Buy Jd Sports Shares

Should You Buy Jd Sports (Jd) Shares At A Bargain?

Over the period of last year, the share price of JD Sports has declined by almost 42%. A key reason for this lackluster performance was tough retail conditions.

Recent data showed that pre-tax profits have declined by 13.% during the 1H financial period. They also announced an 18% increase in sales, but most of it was due to opening new stores and recent acquisitions.

Jd Sports P/E Ratio Is Very Low

But according to one analyst, the JD Sports share price is just where it was a year ago. That means the investors can pick up the JD Sports at a bargain.

He also added that as long as JD Sports continues with its proven brand model and works on cutting costs, the share price can make a comeback.

Another analyst added that the JD Sports shares have declined by more than 40%. This decline shows that all of the market softness and recent challenges are now already priced in.

The JD Sports shares are trading at 6.8x of the next year's earnings. This is a very good and protective valuation for a company like JD Sports.

He added that if the investors remain patient for the next few years, then the current trading price of JD Sports can be a very good entry point.

Also, the P/E ratio of the JD Sports shares is very low compared to its peers. So, this factor also shows that JD Sports is available at a massive discount.

Another positive thing for JD Sports is its aggressive strategy for the e-commerce platforms. This has already started to show results as online sales now account for a good portion of revenue.

In the short term, you can expect some ups and downs in the JD Sports share price. But in the long term, the prospects of JD Sports stock look really good. So, the bottom line is that JD Sports shares are a good option for the long term.

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