I love to see a top FTSE 100 stock that just quietly flies under the radar. Given the significant coverage of the UK’s largest companies, these stocks can be hard to find.

However, I think J Sainsbury (LSE:SBRY) might be one that fits that description. I took a look at the grocery stock to see if it’s one for value investors to consider in 2025.

Recent trading update

The company kicked off the summer with a bit of cheer. Its most recent trading update, for the 16 weeks to 21 June, showed like-for-like retail sales up 4.9%. Strong grocery segment sales growth of 5%, and Argos-related merchandise climbing around 4.4%, helped to underpin the positive result.

This strong period of trading coincided with the company achieving its highest estimated market share in nearly a decade. Despite the positive news, the share price reaction was fairly muted as shareholders appeared to be unmoved by the short-term win.

Valuation

The Sainsbury’s share price has gained 6.7% so far in 2025 and currently sits at £2.94 as I write on 7 August. That gives the stock a price-to-earnings (P/E) ratio of 16.7 right now. How does that stack up against its peers and the broader market?

Tesco shares have gained 11.2% year-to-date and are changing hands at a P/E ratio of 17.9. Similarly, Marks & Spencer shares are trading at a P/E ratio of 17.9 despite a 15.8% share price slide in 2025 thus far. That means Sainsbury’s looks a touch cheaper than its rivals but still within a reasonable range.

The broader Footsie index has gained 10.8% this year and has an average P/E ratio of 17.9. Even accounting for the diversification benefits of a broad market index, I think Sainsbury’s looks good in this context.

Dividends

I’m a big fan of the ‘bird in the hand’ theory and think that Sainsbury’s could also be worth considering as a Footsie dividend stock. The company has a higher dividend yield than Tesco – 4.5% vs 3.3% – at the time of writing. 

Notably, the company’s dividend yield is also higher than the Footsie average of around 3.5%. Given the company’s relative valuation and strong recent performance, I think the handy dividend is just another bonus.

Putting it all together

I think Sainsbury’s has been a solid performer and embedded member of the Footsie. I certainly don’t think it’s screaming Buy right now, and the stock isn’t without risk.

The grocery sector is almost entirely consumer facing, which can impact on revenue and earnings if the economy goes further south and consumers tighten their belts. Profit margins are also notoriously thin in the grocery business and competition is rife from both Tesco and low-cost operators like Aldi and Lidl.

All in all, Sainsbury’s recent share gains and relative value against its peers make it an interesting prospect. Of course, diversification and a long-term perspective are key when investing, but Sainsbury’s may have a role to play in the right portfolio if investors are comfortable with the risks.