Like billionaire investor Warren Buffett, I love scouring the stock market for buying opportunities. Purchase at a discounted price FTSE100 stocks give me a chance to make some juicy profits if they rebound over time.

This Footsie stock has fallen by more than a third since the start of 2024. While it faces ongoing risks, here’s why I think it’s the best recovery stock for long-term investors to consider.

Unfashionable

Weak consumer spending has hit retailers such as JD sports fashion (LSE:JD.) over the last year. Given tender economic conditions and signs of higher-than-expected inflation, it appears that complex times are not yet over.

The sportswear giant posted declines last Thursday (November 21) after reporting that comparable sales fell 0.3% in the third quarter. Respective sales increased by 0.5% in the nine months to October, illustrating the recent deterioration in trading conditions.

One reason is disappointing sales in the US, currently the company’s largest single market. Uncertainty surrounding this month’s presidential election is negatively impacting customer demand, and additional discounts are also negatively impacting overall revenues.

Cheap quote

Conditions may remain complex in 2025 and beyond as President-elect Donald Trump prepares up-to-date trade tariffs from January. Analysts in ING Bank they believe the resulting inflation could raise U.S. consumer costs by $2,400 a year.

Against this background, JD shares may seem unattractive to many investors. However, I think the seller’s troubling near-term prospects are contributing to its rock-bottom valuation.

After last week’s update, JD’s share price fell 16%. Currently, compared to the previous year, it is 37% lower.

As a result, the company is currently trading at a price-to-earnings (P/E) ratio of 7.9 times. In comparison, this is miles below the FTSE 100 average of 14.3 times.

Moreover, JD’s price-to-book (P/B) ratio – which values ​​a company relative to the value of its assets – has fallen to just 1.8 times.

This is the lowest reading since 2013.

Space for reflection

I think now is a good time for long-term investors to consider opening a position. The sports and recreation market is expected to grow strongly over the next decade, especially in the premium segment, where JD is an industry leader.

The company expects the total sportswear market to grow to $544 billion by 2028 from $396 billion last year.

Moreover, the retailer remains committed to global expansion to make the most of this opportunity. Ten years ago it had around 650 stores in the UK, Ireland and Europe. It currently has 4,506 of them and roams its home continent, North America and the Asia-Pacific region.

It is on track to open another 200 stores this financial year alone. And its robust balance sheet – it had net cash of £40.8 billion as of July – gives it the ability to continue cutting the ribbon on up-to-date outlets as well as making up-to-date acquisitions. The last purchase this summer was the American Hibbett.