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    Home » I’ve been loading up on this cheap FTSE 100 share this week!
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    I’ve been loading up on this cheap FTSE 100 share this week!

    userBy userJune 28, 2025No Comments3 Mins Read
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    Image source: Getty Images

    This week I bought some more shares in a FTSE 100 company that already features heavily in my portfolio. In fact, although I always want to keep my portfolio diversified, I decided that topping up my holding in this company when the share price looked particularly cheap could potentially prove to be a lucrative move.

    The FTSE 100 share in question is JD Sports (LSE: JD).

    Why am I so excited about it? Legendary investor Warren Buffett talks about buying into great companies at attractive prices. In my opinion, JD Sports currently ticks both those boxes.

    A proven, cash-generative, growing business

    To start, consider the business. JD’s focus is on selling clothes, shoes and other athletic goods. That is a large market and one that is likely to endure. The customer base also seems to be happy to shell out on pricy goods even when the economy is weak, something I see as a bonus although I do still fear that a deep enough economic downturn could hurt sales.

    JD Sports has built economies of scale and also has a substantial international reach. It has built a sizeable digital presence but not at the expense of abandoning bricks and mortar. In fact, it has been opening hundreds of stores in recent years and this month opened its largest one yet, at Manchester’s Trafford Centre.

    With a strong brand, regular special products unique to JD, loyal customer base and ongoing growth plans, I reckon this is an outstanding business.

    The share looks cheap

    But the road has had some bumps. Last year, JD sports issued profit warnings and it has reined in its aggressive store opening programme.

    A key supplier Nike has had a difficult few years and ongoing weakness in the brand’s sales is a risk for JD Sports too given how big a proportion of its sales are of Nike products.

    But does that justify a share price in pennies? The FTSE 100 company has no debt (excluding lease liabilities) and a market capitalisation of £4.2bn. Yet last year’s profit before tax and adjusting items came in at £0.9bn. To me, that makes the current share price in pennies look unreasonably cheap.

    In a tough market with uncertain risks like tariffs and unpredictable international shipping rates, the FTSE 100 company’s profits this year and in subsequent years may not match last year’s performance.

    However, I remain upbeat about the long-term story here. JD’s investment in growth over recent years is paying rewards already as far as I am concerned.

    The next couple of years will see major sporting events that could help boost customer demand. The company has a proven model that is highly cash-generative and could help support further growth without the company needing to take on debt to fund it.

    As far as I am concerned, the current JD Sports share price is a bargain. I acted on it because I did not want to miss what I see as an excellent opportunity.



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