Only a handful FTSE100 stocks underperformed JD sports fashion (LSE: JD) recently. In five years, the self-proclaimed “King of Coaches” has seen its share price plummet by 57%. Suddenly, JD’s share price has rebounded 12% in the last month. Is this the beginning of a real recovery or another false dawn?

As a stock owner, I’ve seen a lot of short-term rallies over the last few years. I’m not entirely convinced that this time is different.

Is JD Sports finally changing its mind?

It’s been a brutal few years for retailers. Lowering the cost of living has hit spending strenuous, particularly among younger consumers, who are driving demand for high-quality athletic shoes and apparel. JD’s adjusted pre-tax profits have been bumpy lately, as the list below shows:

• 2026 – £852 million
• 2025 – £923 million
• 2024 – £917 million
• 2023 – £991 million
• 2022 – £941 million

JD was unlucky too. It picked a bad time to succeed in the U.S., spending $1.1 billion on Hibbett just as consumer confidence was starting to wane. Despite this, it remains a heavyweight. It operates more than 4,800 stores in 51 countries, with North America currently generating approximately 40% of revenue. Trading has started to show some improvement, but there is still a long way to go.

The May 7 2026 results were roughly in line with expectations. Sales rose 11.7% to £12.7 billion but were driven by acquisitions. The board also announced an amount of £200 million share buyback and raised its dividend by 20%, supported by stronger cash generation. The final yield increased to 1.55%.

Does today’s valuation seem too inexpensive to ignore?

At one point, JD’s price-to-earnings ratio dropped below seven. After a recent escalate, the ratio increased to 8.9, but still seems low for a global retailer with such reach and brand strength.

The risk remains. No one knows yet what AI can do for entry-level employment. However, if younger workers struggle to find work, this could hit spending strenuous.

Will investors have to be patient?

Today’s news (May 24) suggests that we may be close to some kind of peace agreement in Iran, which may include opening the Strait of Hormuz. This would boost shares of all companies, including JD Sports. But we had a lot of false dawns here too, so I can’t take it as concrete.

JD’s management changes focus. Instead of ruthless expansion, management now seems more interested in squeezing more profits from its existing store base and improving efficiency. This seems like a wise move to me considering his recent struggles.

I have no plans to sell my shares, but I don’t expect a dramatic recovery overnight. After such a brutal collapse, I still believe that JD Sports will turn out well, but investors may need to be patient.

At today’s low price, I believe this stock could be a generational opportunity and is worth considering. However, before it reaches its potential, we may experience a few more false starts.

Should you invest £5,000 in JD Sports Fashion now?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. Want to see if JD Sports Fashion made the list?

Harvey Jones owns shares in JD Sports Fashion.