Image source: Getty Images
One FTSE 100 The share of growth is now jumping at me. First of all, how far and quickly crashed. Secondly, how far and quick analysts think it will recover.
So what is this extreme supply? Sports JD fashion (LSE: JD).
Over the years, JD Sports was one of the most admired growth actions in Great Britain, rising into the Blue-Chip index, which he earned on a global boom in trainers and sports wear. But in the last few years it has been absolutely hit.
JD Sports is the worst supplies in the entire Blue Chip index in two years, which is a 61%decrease. It is also the worst over 12 months, which is 48%.
Can JD sports fashion reflect?
And the origin continues. In trade in slightly less than 70 pence, JD Sports fell to the next 52-weekly lowest level.
So what went wrong? Almost everything.
Falling sales, fighting key partner NikeThe unquestioned US expansion by taking over Hibbett in the amount of USD 1.1 billion, frail Christmas defenders (two years in a row) and the crisis of maintenance costs.
Even weather gods hate JD sports. Last year, the management board blamed tardy sales for discounting, delicate weather and caution of consumers before the US elections.
Today, tariffs are the biggest worry. JD Sports is in Great Britain and the USA, and although some of its brands can escape from the worst European labels such as Adidas You can hit demanding.
The rain is demanding to fall on Régis Schultz. In 2023 he advertised plans to make JD Sport “The leading global sport power”. Instead, he turned the group into a warning power of profit.
Investors who jumped in the hope of a return were burned because the actions simply slipped. And yes, I’m one of them. I averaged three times and I was still sitting on a 35% loss.
Is this the best FTSE 100 recovery reserves?
For those who love a good recovery history, JD Sports looks tempting.
17 analysts covering shares have an average annual target price of 120.4 pence. If it is correct, it is a stunning 73% jump from today’s price.
However, forecasts are slippery things. Many of them may be out of date, determined before the latest immersion.
There is a chance that JD Sports can provide this type of reflection, but he would need Trump to soften his tariff attitude and launch the mother of the global rally stock market. I hope he will invite eternal, I think.
No wonder JD valuation looks economical. The price for profit (P/E) is only 5.7, but interestingly, I can’t find P/E forecast. Everyone guesses today.
JD Sports is undoubtedly beaten, but can it bounce back? Absolutely.
However, this supply is not for people with frail nerves. Every investor considering this falling knife should put on armor because he could immerse himself.
For those who want to take a risk, a potential recovery is stunning. Potential losses are similar.