Today, two FTSE 100 shares in particular have caught my attention: Imperial Brands (LSE:IMB) and JD Sports Fashion (LSE:JD.). Their price-to-earnings (P/E) ratios of 10 times or below suggest — for one reason or another — that they are worth serious consideration.

But in reality, are these FTSE stocks brilliant bargains or classic value traps?

Industry-leading value

At £26.53, Imperial Brands shares carry a forward P/E ratio of 9.9. That suggests excellent value compared to the broader tobacco sector, whose ratio sits at 14.5.

The company owns some of the world’s leading tobacco brands. These include JPS and West, labels that enjoy incredible pricing power. Imperial Brands is also investing heavily in fast-growing combustibles, and owns the blu vape and Pulze heated tobacco devices.

The result? Sales are still growing even as wider tobacco demand falls. But the red lights are flashing and revenues are under pressure, growing just 1.8% in October-March. I think investors could be in for a shock in the months ahead as cigarette usage fall sharper than many industry insiders predict.

FTSE 100 rival British American Tobacco announced yesterday (2 June) industry volumes were down 2.5% in the first half. That was sharper than the 2% fall the firm itself had been predicting. But it’s not just sales of traditional products that are in increasing danger. It’s possible that sales of vapes and so on could also wildly disappoint..

According to Hargreaves Lansdown,

There is some evidence to suggest that these products pose a reduced health risk compared to cigarettes, but they are coming under increasing scrutiny, with some products already banned in the US.

Are these risks adequately reflected in Imperial Brands’ share price? I’m not convinced.

Sporting hero?

Could JD Sports Fashion be a better value stock for me to buy? It’s even more attractive based on its forward-looking P/E ratio. This is 8.4 times, some distance below the long-term average of 16-17. Time to pile in?

Possibly, although the risks here also deserve serious consideration. Sales have picked up more recently in key markets like the US, though questions swirl over whether this can continue as inflation spikes again. Looking longer term, I’m also mindful of the growing popularity of Chinese sportswear brands and the danger this poses to JD Sports’ key partners like Nike and Adidas.

Yet, on balance, I believe the shares represent an attractive growth opportunity. The outlook for the broader athleisure market remains robust as consumer lifestyles and tastes evolve. Grand View Research analysts expect the global market to grow at an annualised rate of 9.9% between now and 2033, to $892bn.

Encouragingly for investors, JD Sports has significant exposure to North America and Asia following heavy recent expansion. These are the world’s largest and fastest-growing athleisure markets respectively. With a focus on the white-hot premium market, too, there’s a good chance in my view that the firm significantly outperforms the market.

It’s not without risk. But at just 84.1p, I think this could be one of the FTSE 100’s best recovery stocks to buy.

Should you invest £5,000 in Imperial Brands Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Imperial Brands Plc made the list?

Royston Wild does not hold any positions in the companies mentioned.

The post 2 FTSE 100 bargain stocks to buy in June? appeared first on The Twelfth Magpie.

With this in mind, could this member of the FTSE 100, whose shares currently (1 June) change hands for around 85p, be significantly undervalued? Let’s see.

Who are we talking about?

JD Sports Fashion‘s (LSE:JD.) a familiar sight on Britain’s high streets and retail parks. But in recent years, it’s also expanded overseas. It now has 4,811 stores in 51 countries. Also, the retailer has successfully embraced the internet. Of its £12.7bn of revenue reported during the 52 weeks ended 31 January (FY26), 21% was generated online.

But the group appears to have fallen out of favour with investors. Concerns about the lack of growth in the athleisure market, and the potential impact of artificial intelligence (AI) on the career prospects and disposable incomes of the group’s target demographic of 18-to-24 year-olds, appear to be weighing heavily.

Although the group’s been growing through acquisition, its like-for-like sales performance has been disappointing. And problems at Nike – a key JD Sports parter – haven’t helped either.

Price is what you pay. Value is what you get.

Warren Buffett

A bargain hiding in plain sight?

However, I believe the stock continues to offer tremendous value for money which, in my opinion, makes me think it’s worth considering by those looking to bag themselves a bit of a bargain. Don’t believe me? Let’s see.

During FY26, the company reported adjusted earnings per share of 11.7p. This means the stock trades on just 7.2 times historic earnings. The five-year median is 13.9.

However, cash is a more reliable measure. Here, analysts are expecting free cash flow (FCF) as follows:

• FY26 – £434m
• FY27 – £495m

Let’s take the average of these two numbers (£465m) and divide it by the number of shares currently in issue (4.84bn). This gives FCF per share of 9.6p. What does this mean?

A good deal?

Well, it suggests that for every share in existence, JD Sports has 9.6p available to either return to shareholders, reinvest for growth, or pay down debt. Given that each share currently costs around 85p, this tells me that the group’s in pretty good shape financially.

And I think the death of its market has been greatly exaggerated.

Yes, other sectors are likely to grow faster but Adidas has proven that if a company can get its products right, it can deliver some impressive results.

During the first quarter of 2026, the German sportswear giant reported a 14% increase in revenue and an 11% rise in net profit compared to the same period a year earlier. Nike may be the biggest revenue earner for JD Sports but the British retailer is brand agnostic.

Admittedly, it’s likely to be more of a slow burner than an overnight sensation, but I think the JD Sports share price significantly undervalues the company. I believe it’s one of many cheap UK shares currently available for investors to consider.

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

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

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

James Beard owns shares in JD Sports Fashion plc.

The post 1 FTSE 100 stock under 85p. But is it cheap? appeared first on The Twelfth Magpie.

I’d been wanting to buy JD Sports for years, so when the shares crashed more than 20% after it issued a profit warning on 4 January 2024, I swooped. Too soon, unfortunately. JD was hit by the cost-of-living crisis, troubles at key partner Nike and unseasonable weather. Instead of recovering as I hoped, it continued to struggle. I averaged down twice in early 2025, but still the shares fell.

It’s a different story today (27 May). JD Sports shares have jumped 6.25% this morning. Yesterday, they climbed 4.7%. Over the last month, they’re up a grand total of 25%. I’m still in the red but my losses are narrowing fast. Can JD Sports keep going?

Should you consider it today?

JD published full-year 2025 results on 7 May, which revealed an 11.7% increase in full-year revenues to £12.7bn. That looked good, but was largely driven by acquisitions. Underlying pre-tax profits actually fell 6.4% to £852m, due to acquisition costs and store expansions.

The stock jumped 3% on the day but the shares only really kicked on the following week. I’m putting that down to wider factors, primarily hopes of a US deal with Iran. If that comes through, oil prices and inflation should ease, making consumers feel better off. That seems to be the thinking here. JD heads the FTSE 100 leaderboard today and the next two high flyers are also retailers – Marks & Spencer Group and Burberry Group.

I’m excited, but wary. Excited, because it suggests that when the economy picks up, JD Sports shares may fly. Wary, because if the current surge is based on vague macro sentiment, it could quickly reverse. I’ve had false dawns with JD before.

I’m also worried about youth unemployment, which is rising in the UK and elsewhere, and could be aggravated by AI. That’s JD’s core demographic.

Does the FTSE 100 stock look good value?

JD Sports has looked stonkingly cheap lately, with the price-to-earnings (P/E) ratio dipping below six at times. Today, the P/E has crept up to 9.4. So it’s not as cheap as it was, but still pretty good value.

The group still carries a lot of net debt, £2.8bn at last count. That’s against a market cap of just £4bn. Although last year free cash flow rose 36% to £462m.

I think JD Sports has the potential to outperform and beat the market, and is well worth considering with a long-term view. It’s not going to rise in a straight line, no stock ever does. But it’s great to see it rising again. Game on.

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

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

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

Harvey Jones owns shares in JD Sports and Burberry Group 

The post Up 25% in a month! Is the JD Sports share price heading for the stars?  appeared first on The Twelfth Magpie.

As someone who holds the stock myself, I’ve seen plenty of short-lived rallies over the past few years. I’m not totally convinced this time is different.

Is JD Sports finally turning a corner?

It’s been a brutal few years for retailers. The cost-of-living squeeze hit spending hard, especially among younger consumers who drive demand for premium trainers and sportswear. JD’s adjusted pre-tax profits have been bumpy lately, as this list shows:

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

JD was also unlucky. It picked a bad moment to go big in the US, spending $1.1bn on Hibbett just as consumer confidence started to weaken. Even so, it remains a heavyweight. It runs more than 4,800 stores across 51 countries, with North America now accounting for roughly 40% of revenue. Trading has started to show some improvement, but there’s a long way to go.

2026 results on 7 May came in roughly as expected. Sales rose 11.7% to £12.7bn, but driven by acquisitions. Management also announced a £200m share buyback and lifted the dividend by 20%, helped by stronger cash generation. The trailing yield has crept up to 1.55%.

Does today’s valuation look too cheap to ignore?

At one point, JD’s price-to-earnings ratio dipped below seven. It’s crept up to 8.9 after the recent rally, but still looks low for a global retailer with this footprint and brand power.

Risks remain. Nobody yet knows what artificial intelligence could do to entry-level employment. But if younger workers struggle to find jobs, that could hit spending hard.

Will investors have to be patient?

News today (24 May) suggests we may be nearing some kind of peace deal in Iran, which may include the opening of the Strait of Hormuz. That would boost stocks across the board, including JD Sports. But we’ve had plenty of false dawns here as well, so I can’t take that as concrete.

JD’s board is shifting focus. Instead of relentless expansion, management now seems more interested in squeezing stronger returns from its existing store base and improving efficiency. That seems a sensible move to me, given its recent struggles.

I have no plans to sell my shares, but I’m not expecting a dramatic overnight recovery. After such a brutal collapse, I still believe that JD Sports will come good, but investors may need patience.

I do think the stock could prove a generational bargain at today’s low price, and is well worth considering. But we could suffer a few more false starts before it lives up to its potential.

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

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

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

Harvey Jones owns shares in JD Sports Fashion.

The post After plunging 60% is this FTSE 100 stock star now a generational bargain? appeared first on The Twelfth Magpie.

I tend to do the former. Indeed at the moment, I own a number of individual FTSE 100 shares such as JD Sports (LSE: JD), but no trackers.

Each investor is different, though. I see some pros and cons to using a FTSE 100 tracker instead of trying to build a portfolio by choosing individual blue-chip shares.

Keeping things simple

One straightforward reason many people plump for an index tracker is that they lack the time or inclination to try and build their own portfolio.

Doing that can involve taking a lot of time scouring the market for opportunities and digging into data about their business performance and prospects, such as their accounts.

Missing out on some brilliant individual opportunities – and some dogs!

Still, doing that can sometimes pay significant rewards.

Those could show up as part of a FTSE 100 tracker too – but as only one share among 100.

Take Rolls-Royce as an example.

Its 1,012% share price gain in five years has certainly helped FTSE 100 trackers. But it has been more lucrative for investors who own the share directly as part of a portfolio containing just a few FTSE 100 shares.

That cuts both ways, though. While a tracker by definition underperforms the best individual shares within it, it will outperform the dogs.

The Footsie’s up 47% in five years. Compare that to the 59% share price destruction seen in JD Sports in the same period.

One downside of a tracker may be that it is not heavily weighted to the top performers in the index. But an upside is that, unlike some portfolios or funds, it is not heavily weighted to the dogs either!

Index trackers can have attractively low costs

Another entry in the plus side of the ledger for trackers can be their cost structure.

It is difficult for individual private investors (or even large professional ones, come to that) to beat the market. That is one factor that helps explain why vast sums are poured into index trackers by investors.

With economies of scale and no need to employ costly fund managers, trackers can offer low fees compared to many actively managed funds.

Still, even modest fees and commissions can eat into returns, especially over time. So whether for a tracker or individually constructed portfolio of FTSE 100 shares, a tax-efficient structure like a Stocks and Shares ISA can be an appealing way to invest.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Time to sell?

So, given those pros and cons, why am I hanging onto my JD Sports shares instead of cutting my losses and putting the money into a FTSE 100 tracker instead?

Risks like weakening consumer confidence and rising logistics costs could hurt earnings at lots of FTSE 100 firms, including JD Sports. But the sportwear retailer’s dramatic underperformance in recent years reflects some specific risks too, like the unproven bottom line benefit of its massive store opening programme.

Still, that has given it global reach and economies of scale. It has a strong customer following and powerful brand.

The share’s performance lately has been disappointing. But as a long-term investor, I plan to hang on.

Christopher Ruane owns shares in JD Sports.

The post 2 pros and 2 cons of using an ISA just to track the FTSE 100 appeared first on The Twelfth Magpie.

The answer may surprise you!

The SIPP structure can offer investors a compelling benefit

When we invest, we often expect that the amount of hard-earned cash we put into the investing platform might be chipped away at by things like fees, commissions, and dealing costs.

Unfortunately, that is also true when investing through a SIPP.

However, a SIPP can offer one big immediate advantage compared to other investing structures: tax relief.

I am not talking about the tax-free capital gains and income inside the wrapper, just like a Stocks and Shares ISA offers. That is also true of a SIPP, although the rules on withdrawal (both about tax and when it can be done) are different to an ISA.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Doing more with the same amount of money

No, I am talking about tax relief.

In short, the government will boost the amount you put into your SIPP as a way of effectively refunding (without interest) the income tax you paid on the money involved.

For higher and additional rate income tax payers that can be a huge benefit.

Even for a standard rate income tax payer, though, this could be very powerful. In fact — and oddly — even non-taxpayers can get that tax relief.  

In practice, it means that someone putting £10,000 into a SIPP would in fact have £12,500 to invest without putting in any more money of their own.

More money, more returns

Let’s put that in perspective.

Over the past five years, the FTSE 100 index is up 45%. So someone who put £10k into a tracker in a share-dealing account five years ago would now be sitting on around £14,500.

But someone who put that same amount (£10k) into a SIPP and then bought the same tracker would now be sitting on a SIPP valued at around £18,125.

That is before even taking into account dividends along the way.

The amount of passive income earned would be 25% higher thanks to the effect of tax relief in the SIPP, compared to making the same moves outside the SIPP wrapper.

On the hunt for SIPP winners

As it happens, I do not currently own any index trackers in my SIPP.

But I have been investing directly in some FTSE 100 shares.

One that has been doing poorly is JD Sports (LSE: JD). While the FTSE 100 is up by 45% over five years, the same period has seen the JD Sports share price sink by three-fifths.

Nor is the dividend exciting. A 1.7% yield falls well below the 3.1% offered by the wider index.

So, why am I hanging on?

I am not ignoring the risks. Weakening consumer spending threatens demand for pricey athleisure wear. The value of JD Sports’ expansion programme over the past few years remains to be proven. But it has boosted the British company’s global footprint and economies of scale.

The brand is strong and the company remains highly profitable. Profit before tax and adjusting items last year fell, but still came in at £852m.

The share looks undervalued to me. I plan to keep it in my SIPP!        

The post Here’s why a SIPP stuffed with FTSE 100 shares could beat the FTSE 100 easily! appeared first on The Twelfth Magpie.

As a long-term investor, I love buying beaten-down quality shares, though. So I’m giving the sportwear retailer a close look after last week’s more positive trading update.

Hargreaves Lansdown commented after the release that

JD Sports hasn’t kicked off the year in style, but there were early signs of improving trends in its largest region, North America.

Could early-bird investors be rewarded by snapping JD Sports shares up cheaply today? It’s possible…

JD Sports shares rise!

Like many retailers, JD Sports has suffered as consumers have become more picky over what they buy. A backdrop of soaring inflation, higher interest rates, and weak growth has left people with less money in their pockets.

JD Sports has been more exposed than many in its sector, too. Why? Focusing on premium brands like Nike and Adidas has paid off handsomely during the good times. But it’s left the company more vulnerable as people have sought cheaper alternatives.

Trading results on Thursday (7 May) were more positive, though. They showed “sales trends sequentially improved through the year” in North America during the 12 months to January. This is critical — the company makes roughly 40% of revenues from the region.

Investment in its digital platform and supply chains helped the business make the best of an extremely tough period. Pre-tax profit dropped 7.7% to £852m, though sales rose 11.7% to £12.7bn (or 2.1% on an organic basis).

The share price rose on the news, which was also boosted by the announcement of bumper shareholder returns. The retailer hiked full-year dividends 20% and announced a £200m share buyback programme, supported by a jump in cash flows.

So what next?

The question is: is JD Sports now over the worst? By its own admission the answer is ‘no.’

It’s expecting “muted market growth in the near term,” with consumer spending impacted further by the Iran war. Pre-tax profit for this financial to year is tipped to drop from fiscal 2026, to between £750m and £850m.

Yet it’s possible in today’s climate that we see more share price-smacking profit forecast downgrades, the most recent of which came in November. So what should investors do today?

A top FTSE 100 share

As a long-term investor, there’s a lot I like about this FTSE 100 share. It retains significant growth potential as changing consumer habits fuel the ‘athleisure’ market. And it is well placed to capitalise on this when consumer spending improves, through:

• Its leading position in the higher-growth premium segment.
• Exclusive supply agreements with sportswear heavyweights.
• The firm’s popular and expanding digital platform.
• Significant cash flows to fund long-term store expansion.

The share price collapse means it now trades on a forward price-to-earnings (P/E) ratio of 5.9 times. That’s hugely attractive for a company of this quality, in my view. While it’s not without risk, I think it’s a great share for investors seeking cheap FTSE 100 stocks to consider.

The post Down 61% and a P/E of 5.9! Is this FTSE 100 share FINALLY rebounding? appeared first on The Twelfth Magpie.

I added all three to my SIPP in 2023. They’ve been a disaster for my portfolio, each falling a third on my watch. And that’s despite me averaging down on bad news. There’s been plenty of it.

When will Taylor Wimpey shares recover?

The first flop is FTSE 250-listed house builder Taylor Wimpey (LSE: TW) – although it was in the FTSE 100 when I bought it. The shares are down 33% over the last year, and 55% over five. It now trades on a low forward price-to-earnings (P/E) ratio of just over 11. The forward yield is a mind-boggling 11.9%, but don’t be fooled. The dividend is being cut so investors can expect around 7.5%. Which still isn’t bad.

Taylor Wimpey has been hit by affordability issues, the cladding scandal, rising cost of labour and materials, the end of the Help to Buy scheme. Today, there’s the threat of rising inflation and interest rates. So can it turn that round?

Alas, I’m not very optimistic for this year. The UK economy looks set to struggle, as the Iran conflict drags on. I still believe it’s time will come. And I will keep reinvesting my dividends until it does.

Why is Diageo struggling?

Spirits giant Diageo (LSE: DGE) is still in the FTSE 100, although it’s not for want of trying. Its shares have done just as badly as Taylor Wimpey’s, down 34% over one year and 55% over five.

The Johnnie Walker, Baileys, Guinness and Smirnoff owner has also been struck by the cost-of-living crisis, which has forced drinkers to trade down from its premium brands, as well as US tariffs, and localised issues in Latin America and China.

It’s now headed by turnaround specialist Dave Lewis, who salvaged Tesco, and I’m optimistic he’ll work his magic again here. Sadly, he started by halving the dividend. Diageo’s forward P/E is also low at 12.4, way below its 10-year average of 22. But with the oil price spike squeezing drinkers all over again, patience is once more required.

JD Sports is a beaten stock

I’m afraid the same must be said of my final portfolio straggler – self-styled ‘King of Trainers’ JD Sports Fashion (LSE: JD). This was also hit by the consumer squeeze. The timing was unlucky, because it had lined up a big move into the US through the $1.1bn purchase of local retail chain Hibbett.

I thought JD looked like an unmissable bargain with a forward P/E of around six. Unfortunately, it’s still around that today. The JD Sports share price is down 17% over the last year and 64% over five.

I think all three have massive recovery potential and are worth considering today. Investors may have to be patient though. They all need a wider economic recovery, and that could take a year or two. I’m backing Diageo to recover first. It’s updating the market tomorrow (6 May), and I can’t wait to see what it says.

The post I’m backing these 3 disastrously cheap shares to rocket back to favour appeared first on The Twelfth Magpie.

But the key to value investing is to identify those struggling due to a short-term issue, something that’s unlikely to last for very long. Otherwise, there’s nothing to stop a company’s share price falling further. With this in mind, could this familiar name on the FTSE 100 begin a comeback soon?

Who are we talking about?

JD Sports Fashion‘s (LSE:JD.) a staple of Britain’s high streets and retail parks. However, the self-styled ‘King of Trainers’ is struggling.

Although it’s grown in recent years by buying more overseas stores, its like-for-like sales are falling. The retailer’s most recent trading update revealed a 2.1% drop for the 48 weeks to 3 January, compared to the same period a year earlier.

When its full-year results are released, analysts are expecting a similar fall. And they’re predicting a drop of 0.7% for the 52 weeks ending 30 January 2027 (FY27).

Clearly, this lack of growth explains the group’s disappointing share price performance. Indeed, the company’s now in danger of being relegated from the FTSE 100.

More bad news

On 22 April, the City had another reason to put the boot in with the surprise announcement that the group’s chair, Andrew Higginson, would leave in the summer. Even though the reasons are unclear, I believe investors over-reacted.

The group’s shares fell 3.9% wiping over £140m off its market-cap. With remuneration of £480,000, investors value Higginson at over 290 times his earnings!

That’s massively more than the group itself. In fact, the stock’s historic price-to-earnings (P/E) ratio is close to its five-year low and comfortably below its average (14.3) over this period.

As we move into the next phase of our journey, our focus on business discipline and cashflow leaves JD well-placed to deliver the value it unquestionably represents

Andrew Higginson, chair, JD Sports

On the other hand…

Yet despite its lack of growth, the group remains cash generative and, excluding leases, is in a net cash position.

Analysts are expecting FY27-FY28 free cash of over £900m. With no plans to expand, this should leave plenty of money to spend on redeveloping and refreshing its existing stores. This could be the catalyst to get the group’s share price moving in the right direction again.

Analysts are forecasting earnings per share as follows:

• 11.37p (FY26).
• 11.38p (FY27).
• 12.50p (FY28).

Trading at just 5.5 times forecast (FY28) earnings, the stock appears incredibly cheap. In theory, investors are likely to be attracted to stock with a low P/E ratio. However, with a lethargic top line it’s hard for investors to get excited, despite the group being profitable and cash generative. Momentum’s so important in the world of investing.

As a shareholder, I find this lack of progress frustrating. But I’m not giving up on the company. With its strong brand, increased exposure to North America, and the enduring appeal of the athleisure market, I think it will get back on its feet soon.

That’s why I think it could be considered by long-term investors looking to buy a cheap share at a rock-bottom price.

The post With a forward P/E of 5.5, is the ‘King of Trainers’ a bargain-basement value share to consider buying now? appeared first on The Twelfth Magpie.

Looking around, I can see a few of potential opportunities to consider in the UK market.

Turnaround candidate?

Broadcaster ITV (LSE: ITV) is arguably one example. Based on analyst projections, its shares currently change hands at a price-to-earnings (P/E) ratio of just under 10.

The trouble is that the performance of the share price over the long term leaves a lot to be desired. Anyone picking up the stock five years ago will have endured a 33% fall. Sure, dividends received over this period would have soothed the paper loss to some extent. But this is akin to treading water. It’s not a recipe for getting rich.

Can long-standing CEO Carolyn Mccall and her team turn things around? The sheer amount of competition ITV faces along with the structural decline in TV advertising suggests it will be tough. But more growth in its Studios division would certainly do no harm. I also wouldn’t rule out a takeover bid or two.

In the meantime, the stock offers a forecast yield of 6.3%.

Huge dividend yield

Price comparison websites provider MONY Group (LSE: MONY) is a second mid-cap value stock that catches the eye and may be worth further research. Like the broadcaster, its share price has been going down for some time now. We’re talking about a 14% fall in the last 12 months.

A lot of this seems to be fuelled by concerns over the £900m cap’s ability to grow. Yes, revenue is ticking up but this is not the sort of momentum that’s going to get investors busting a gut to buy. The large number of share sales by directors in March doesn’t bode well either.

All that said, MONY trades on a P/E of nine. That looks remarkably cheap considering the above-average margins it consistently posts. The launch of a new MoneySuperMarket Chat GPT app also shows how it’s leveraging artificial intelligence (AI) to enhance services for customers.

The passive income is worth mentioning too. At a chunky 7.6%, the forecast yield is over double that of the FTSE 250.

How cheap?

By contrast to the previous two stocks, JD Sports Fashion (LSE: JD) pays relatively little in dividends. So there won’t be much in the way of compensation for buyers if the shares keep falling in value. They’re already down nearly 20% in 2026 alone!

The outlook isn’t great either. With inflation on the rise due to the conflict between Iran and the US, it’s likely that shoppers will be looking to cut back (again) on discretionary purchases.

But I still think there’s a lot to like. JD’s ongoing growth strategy in the US is progressing well and now accounts for a significant amount of total revenue. The forthcoming footfball World Cup could also provide a boost to earnings (even during tough times) thanks to long-standing partnerships with key brands such as Nike and Adidas.

To cap things off, it’s also the cheapest of the three. The P/E here’s a little less than six! If/when sentiment improves, those brave enough to think about investing now could be rewarded.

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