I’d buy shares in this FTSE 100 company right now

Over the past month, the FTSE 100 has remained flat. Share from Sports Fashion JD (LSE: JD) has increased by almost 3% over the same period.

However, I believe there is still a good opportunity to invest in the stock of this Footsie company if I have the money to do so.

With the strong growth that JD Sports has experienced and is expected to continue, the stock looks very cheap right now.

What JD Sports doesn’t

JD Sports specializes in the trainer and sports retail market. It sells its own brand. However, it recently sold 15 brands to Mike Ashley The Frasers Group for £50m. I believe this is an indication that they will focus on selling items from popular brands, such as Nike and Adidas.

The global sports footwear and apparel market is also a high-growth industry. Until 2028, the global footwear market is expected to grow at a compound annual growth rate (CAGR) of 4.8%. This would value the industry at $134.99bn.

Additionally, the sportswear market is expected to grow at a CAGR of 5.53% to a value of $279.2bn. Therefore, JD Sports is given a great opportunity to take part of this growth.

Macroeconomic problems

However, due to global events, the price of raw materials needed to make footwear and sportswear has increased. This increases costs for JD Sports. This can be seen as quarterly earnings were down 19.3% year on year (YoY), reflecting higher costs.

In addition, the UK is in recession and facing a cost of living crisis. Many people struggle to make ends meet, and a pair of fancy new trainers can be the last thing on their minds.

Therefore, JD Sports may suffer some short-term problems in terms of costs and maintaining growth when the UK is in economic turmoil.

Strong growth

However, the company is still experiencing very strong growth. Quarterly revenue increased 13.7% YoY. Although this was a sharp drop from the previous quarter, sales still doubled as consumers made tough choices about how to spend their money.

Furthermore, the growth rate achieved is still outstripping the growth of the wider sportswear and footwear market. This shows that JD Sports needs to take market share from its competitors.

It also turned its attention to growth in markets outside of Europe, expanding its presence in Asia. This should help the company maintain strong growth in the long term.

JD Sports shares are also trading in bargain territory, with a forward price-to-earnings (P/E) ratio of just 9.6. For context, the average P/E ratio of FTSE All-Share companies is 14.4.

Therefore, the strong growth experienced by JD Sports combined with a very attractive valuation makes the Shares look attractive.

What now?

FTSE 100 companies trade in industries supported by strong fundamentals. The sportswear and footwear market looks set to continue to grow. There are some short-term concerns about the economic effects, but as a long-term investor, this doesn’t bother me.

Currently, revenue growth is better than the competition, and I believe earnings will continue to grow after the economy settles. Combined with the low price, I would buy JD Sports shares today if I had the money to do so.