Finding the best investments in FTSE100 often requires a combination of good value and excellent growth. In my opinion, JD Sports Fashion (LSE:JD) offers both in abundance. Here’s why I think it could deliver excellent returns in 2025. But would I buy?

Bargain prices for exceptional growth

I almost bought the stock in early September when it was 15.5% cheaper than it is today. At that point I saw that the market had significantly undervalued the company. I thought it could achieve a 35% boost in market cap in 18 months.

While there are a few fewer value opportunities now than there were at the beginning of the month, the investment is still well-positioned for top-tier long-term returns, in my opinion. It still has a bargain price-to-earnings (P/E) ratio of just 14.5. That’s significantly lower than the 10-year median of 23.

However, the company’s growth is slowing. This is the main reason why the market is now valuing it cheaper.

While I can expect good growth in the future thanks to a solid international expansion strategy (especially in North America), I don’t expect the stock to grow as rapidly over the next decade as it has over the past 10 years, up 744%.

Analysts are hopeful

I am more hopeful than analysts on this issue, but 14 analysts forecast an average 12-month price boost of 10.3%.

In my opinion, the investment could yield higher returns as it is potentially undervalued. If the P/E ratio grows by 5% over the next 12 months and reaches the consensus earnings per share estimate of £0.14 for January 2026, the shares could be worth £2.14 by the end of 2025. That is if the market factors future earnings into the valuation of the company at an early stage.

But I am not Very hopeful person. The highest 12-month price target for JD Sports shares among the 14 bankers I surveyed is currently £2.50.

Focus on the long term

While a 40% return from the current price of £1.52 sounds appealing, that’s not enough for the company to earn a place in my portfolio. Instead, I need to know that this company has a high probability of continuing to grow in the long term.

Analysts expect average annual earnings per share growth over three years at 16%. Management has achieved this estimate thanks to an effective operating strategy, in which non-core businesses were sold to focus on the best performing assets.

However, because the company is so heavily invested in Western markets, it is very vulnerable to a potential recession in that region, which I believe may come soon. With high inflation and a huge federal debt piling up in the US, I make sure I don’t own too many Western-focused businesses at the moment.

Is it worth spending a tiny amount of money on it?

So, will I buy JD Sports? Getting great returns from a portfolio is all about diversification. I need to have shares in around 10 great companies. However, it is crucial to make sure that these are different across regions and industries around the world. This helps protect me from the unique risks of different markets.

I’m still thinking about buying this stock, but haven’t made up my mind yet. But I don’t want to make the mistake of waiting too long – the undervaluation probably won’t last much longer!