Down 37%, here’s one of my favorite FTSE 100 bargain stocks to consider

Like a billionaire investor Warren BuffettI love scouring the stock market for bargains. Buy cheaply FTSE 100 Stocks give me the opportunity to earn juicy returns if they recover over time.

This Foot The stock has fallen in value by more than a third since the start of 2024. Although it faces ongoing dangers, I think this is one of the most important recovery stocks for long-term investors to consider.

Out of fashion

Weak consumer spending has put pressure on retailers JD Sports Fashion (LSE:JD.) of the past year. And the tough times appear far from over, given weak economic conditions and signs of more persistent than expected inflation.

The sportswear giant slumped last Thursday (November 21) after saying like-for-like sales fell 0.3% in the third quarter. Corresponding sales rose 0.5% in the nine months to October, illustrating a recent deterioration in market conditions.

One reason is disappointing sales in the US, now the company’s largest internal market. The uncertainty surrounding this month’s presidential election has hurt customer demand, with additional discounts also hurting overall revenues.

Cheap appreciation

Conditions may remain difficult in 2025 and beyond, as newly-elected President Donald Trump will prepare new trade tariffs from January. Analysts at ING bank I think the resulting inflation could drive up US consumer costs by $2,400 per year.

Against this backdrop, JD stock may seem unattractive to many investors. But I think the retailer’s troubling near-term outlook is baked into the floor valuation.

JD’s share price fell 16% after last week’s update. It is now down 37% year to date.

As a result, the company currently trades on a price-to-earnings (P/E) ratio of 7.9 times. To put this into context, that’s miles below the FTSE 100 average of 14.3 times.

Furthermore, JD’s price-to-book ratio (P/B) – which values ​​the company relative to what its assets are worth – has fallen to just 1.8 times.

This is the lowest level since 2013.

Room for a rebound

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

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

Furthermore, the retailer remains committed to global expansion to make the most of these opportunities. Ten years ago it had around 650 stores in Britain, Ireland and Europe. Now there are 4,506 criss-crossing the home continent, in addition to North America and Asia Pacific.

It is on track to open another 200 stores this financial year alone. And its strong balance sheet – the company had a net cash position of £40.8 billion in July – gives it room to cut the ribbon on new outlets and make new acquisitions. The most recent purchase was that of American Hibbett during the summer.