So, how have investors done who backed the index?

Up, up, and away

Pretty well, in my opinion.

Since the start of 2026, the FTSE 100 is up by 5%. So somebody who put £10,000 in back then ought already to be sitting on a portfolio worth around £10,500.

On top of that, there are dividends to consider. Currently, the FTSE 100 yields 3%. On a £10,000 investment, that would mean around £300 per year in passive income.

I am a long-term investor, though. So a timespan of just a few months may not be the most relevant, from my perspective.

Still, longer term, the FTSE 100 has also done well.

Over five years, it is up by 50%. That rise also means that someone who invested five years back would now be earning a yield well above the current 3%.

Lots of investors ‘buy the index’

Above I talked about investors who had backed the index.

For a major index like the FTSE 100, that can be easy to do.

There is a plethora of FTSE 100 trackers that basically mirror the index, meaning someone who wants to invest in it can buy such shares rather than trying to build their own 100-share portfolio.

Some of those index trackers offer dividends, while others reinvest them.

With so many options on the market, pricing can be very competitive. So it pays to compare the options when choosing.

That said, index tracking is not the only way to invest in large blue-chip British companies. Another option, which I use, is to invest in individual shares.

One FTSE 100 share I like

That can be more work, as it involves researching specific companies and their valuations.

But the idea is that, if I can invest in the better shares of the FTSE 100, I may be able to outperform the index. The challenge, of course, lies in deciding ahead of time how individual shares may perform.

Take JD Sports (LSE: JD) as an example. I have long seen the FTSE 100 sportswear retailer as undervalued – yet it has been going nowhere fast.

So far this year, it is up less than 1%. That lags the FTSE 100 index’s performance.

Over five years, it is a similar story. While the index is up by half, JD Sports is down by 51%. That is a horrible performance.

So, what has gone wrong — and could it be fixed?

Big spending on expansion has not translated to better profitability. That is a risk that continues to haunt the company. Another is that in a weak economy, demand for expensive brand name trainers may fall.

Still, the company’s growth has helped boost sales and cemented its global position. The brand is strong, it understands its customers well, and the company is solidly profitable.

Despite it underperforming the index, I will continue to hold JD Sports in my portfolio.

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?

Christopher Ruane owns shares in JD Sports Fashion.

The post Here’s what £10,000 put into the FTSE 100 at the start of 2026 is worth now… appeared first on The Twelfth Magpie.

Let’s take a closer look.

Who?

Shares of JD Sports Fashion (LSE:JD.), the self-styled ‘King of Trainers’, are now (12 July) changing hands for 57% less than they were five years ago.

With adjusted basic earnings per share (EPS) of 11.71p for the 52 weeks ended 31 January 2026 (FY26), the stock has a trailing 12-months price-to-earnings ratio of 7. In July 2021, it was 14.9.

In FY21, the sports retailer reported EPS of 12.84p. It appears as though the group’s gone backwards over the past five years. Investors prefer a good growth story. That’s why the stock keeps on getting cheaper.

What next?

However, it’s the future that really counts. Can the group start to grow again?

Significantly, after a major acquisition in 2024, North America’s now its biggest market and no longer entirely dependent on a sluggish UK economy. By contrast, the US is expected to grow over 2% this year.

But the group’s expecting like-for-like (LFL) sales to fall by 2.3% in FY27. In FY26, they fell 2.1%. This financial year, it’s anticipating free cash flow of £460m-£520m and an adjusted profit before tax of £750m-£850m. In FY26, these were £462m and £850m respectively.

No wonder the group’s share price has being stuck in the doldrums.

A big issue

One of JD Sports’ problems has been an over-reliance on Nike. The American sportswear giant is believed to account for around half of its sales. All search results on the company’s website return Nike at the top, with other brands following in alphabetical order.

Yet Nike’s struggled in recent years. A lack of product innovation and the emergence of new challengers and resurgent rivals has seen its share price tank. Although there are some signs that the business has stabilised, a recovery isn’t assured. Sales for the three months ended 31 May were 1% down on the same quarter a year earlier.

Still hope

But it doesn’t have to be like this. Adidas is booming at the moment. It reported a 14% increase in revenue during the first quarter of 2026, compared to the same period a year earlier. Operating profit was 16% higher.

Reports of the death of the athleisure market seem exaggerated. There’s talk that the key demographic of 18-to-24 year-olds is suffering as a result of AI destroying entry-level jobs. But with the right products, I think Adidas proves it’s still possible to grow.

On Running and Hoka are also doing well. Importantly, JD Sports sells all of these brands and more. Perhaps the time has come to quietly drop its emphasis on all-things Nike?

My view

Despite its troubles, I’m optimistic about the British retailer’s prospects. Analysts appear to agree. They forecast FY29 EPS of 13.65p. If correct, the stock trades on an incredibly-cheap 6 times future earnings.

Crucially, it remains cash generative, which gives the company an opportunity to invest to grow. Also, I’m confident that the World Cup has helped sales, particularly in North America.

On balance, I reckon JD Sports remains a cheap stock 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 With a P/E ratio of 7, is it time to consider one of the FTSE 100’s cheapest stocks? appeared first on The Twelfth Magpie.

Is this a new reality for the share, or simply a prolonged opportunity to snap up the share for less than it is worth?

This isn’t a cut and dried case

The answer is a bit hard to call with confidence at this point. On many metrics, the JD Sports share price looks cheap to me. But that has been clear for several years already.

While there are occasional spurts up, they tend to fizzle out before the share then slides down again.

The share is now 57% cheaper than it was five years ago.

The optimist in me thinks that makes it a real bargain, given JD’s global reach, strong brand, solid profitability and ongoing prospects. It helps explain why JD Sports continues to hold a significant place in my portfolio.

But the pessimist in me wonders why a FTSE 100 share I find so attractive could have more than halved in five years. Could doubters be right about the risk that costly expansion may eat into profit margins?

Might JD’s competitive advantage be slimmer than I think, especially if a weak economy means shoppers feel less inclined to pay premium prices for sports shoes and athleisure?

Those doubts help explain why, although I have bought JD Sports shares when the price has dipped, I have also sold some over the past year to bank some profits.

Why this could hit £1 again

Clearly, a lot of investors no longer have much enthusiasm for JD Sports. Why?

Revenues have grown strongly, reflecting the company’s global expansion of recent years. Last year alone, for example, they were up 11%.

The issue has been about profits. Operating profits last year fell 13% — never a good sign, but notably so given that sales growth was strong. That translated into a 9% fall in basic earnings per share.

Still, basic earnings per share came in at 8.6p. That means the 1.2p per share dividend was covered over 7 times by earnings. The dividend is also amply covered by cash flows. The shareholder payout last year cost £52m. Compare that to the £1.4bn of net cash generated by operating activities.

Yes, there are other non-operating expenses to pay and they are substantial. Still, although no dividend is ever guaranteed, that coverage is unusually strong.

The balance sheet also looks decent. Excluding property leases, the company ended its most recent financial year with net cash of over £300m. All this for a company with a market capitalisation of just £4.0bn.

The price-to-earnings (P/E) ratio of 10 looks cheap to me given the business prospects and its strong financial condition. Even a £1 share price would only mean a P/E ratio of 12, which I think is completely viable for this quality of business. The current average FTSE 100 P/E ratio is already well above that, at around 16.

Still, without some strong news to force a City reassessment, the JD Sports share price could continue to tread water for a while yet, I reckon.

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?

Christopher Ruane owns shares in JD Sports.

The post Still stubbornly in pennies, will the JD Sports share price hit £1 again? appeared first on The Twelfth Magpie.

Investing earlier on in the tax year too can have a powerful impact on wealth creation over time. As Angela Smith — senior investment director at asset manager Rathbones — notes:

Investing earlier in the tax year gives your money up to 12 extra months of potential compounding. You don’t need to use the full allowance at once — even smaller early contributions can make a meaningful difference.

Now’s an especially good time to consider investing in an ISA, too. Why? The London stock market is jam-packed with bargains that might not stay cheap for long. Here are three that have grabbed my attention.

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.

No penny dreadful

Penny stocks like Topps Tiles can experience severe share price volatility at times. In this case, an economic downturn that hits the building materials industry could cause some choppiness.

Yet I feel this scenario is more than baked into the firm’s rock-bottom valuation. It trades on a forward price-to-earnings (P/E) ratio of just 7.2 times.

I’m expecting Topps’ growth measures, like improving its digital and trade channels, to support earnings in the near term. Looking further out, I think profits could soar as the UK ramps up housebuilding activity. The advanced age of the country’s housing stock should also underpin strong demand from the maintenance, and improvement (RMI) sector.

All-round value

FTSE 250-listed share Investec offers terrific value based on both earnings and dividends. The asset manager’s forward P/E ratio sits at 7.6 times. Its dividend yield for this year, meanwhile, is 5.8%.

So why are Investec shares trading so cheaply? It chiefly reflects fears investor flows could slow amid uncertain economic conditions. The good news is the firm’s found ways to thrive despite tough conditions — operating income rose 4.2% in the 12 months to March.

I’m expecting this to continue. Longer term, I expect income and profits to balloon thanks to favourable demographic trends and rising interest in financial planning.

A FTSE 100 bargain?

JD Sports Fashion (LSE:JD.) is one of my favourite FTSE 100 shares for investors to consider in June. It’s on my own Stocks and Shares ISA watchlist right now.

Why? With a forward P/E ratio of 8.5 times, it offers once-in-a-decade value for money. That’s miles below the Footsie firm’s 10-year average of 15-16.

JD Sports’ been under the cosh more recently as rising consumer caution has hit sales. This remains a threat as inflation rises again and the Middle East crisis hits economic growth. But I think recent share price weakness represents an attractive dip buying opportunity.

I expect the shares to recover strongly over time as the ‘athleisure’ market steadily grows. With worldwide store expansion rolling on and the firm’s digital platform, I expects sales and profits to soar from today’s levels.

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?

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

The post Your ISA allowance is waiting! 3 dirt-cheap stocks to consider right now appeared first on The Twelfth Magpie.

The last five years have been brutal, with the JD Sports share price crashing almost 55%. I bought on the first dip and kept averaging down, and each time it blew an even deeper hole in my SIPP. Until now. It’s suddenly the best performing UK blue-chip of the past month, up 30%. That would have turned a £12,000 investment into £15,600. Personally, I’m still in the red overall, but only just. What brought this on?

Can this FTSE 100 recovery play keep going?

The catalyst was full-year results on 7 May, with revenue jumping 11.7% to £12.7bn. JD Sports runs 4,811 stores across 36 countries, and posted growth in every region except the ailing UK. The retail chain was founded in Bury in 1981, but its home nation now accounts for just 25% of sales.

Investors were also pleased to see free cash flow rise 36.3% to £462m, while net debt was cut by £200m to £2.8bn.

The shares climbed 3.3% on the day but the real action has come since. Like a lot of cyclical consumer stocks, it tends to lead the charge when hopes rise for an Iran peace deal. That makes me wary, because I can’t see an easy route out of that conflict.

Perhaps investors are pinning hopes on the upcoming FIFA World Cup. It’s being held in North America, now JD’s biggest market with 38% of sales.

The $1.1bn acquisition of US retailer Hibbett in July 2024 was unluckily timed, but may now pay off as sales recover. In my view, the board is wise in deciding to focus more on making the current business work, rather than expanding further.

It’s also looking to reward shareholders. The board is running a £200m share buyback, and the forecast dividend has crept up to 1.6%. Let’s not get carried away though.

Profits are expected to be flat or fall slightly in 2026. Jobs are getting harder for younger people to find. Artificial intelligence could make it harder, hitting JD customers in the pocket.

Is this FTSE 100 stock still good value?

Here’s something else to keep an eye on: the price-to-earnings ratio. At the nadir, it fell to just 5.9. That’s why I kept buying. Today it’s just over 10. That’s what happens when a stock jumps by almost a third in a month. JD is still decent value, but not an absolute bargain.

I’m thrilled by the recovery and I’m hopeful of more to come. But I wouldn’t expect the stock to jump another 30% in the next month. The real explosion will come when the cost-of-living crisis is firmly behind us. Let’s hope that’s soon.

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 See what £12,000 in explosive JD Sports shares 1 month ago is worth today appeared first on The Twelfth Magpie.

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.

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