I’m pleased to say that my candidate for the best stock to buy today is one I already own. Sadly, that’s the only positive thing I can say about this FTSE 100 stock, because it’s been a disaster since I added it to my SIPP in 2024. Is that about to change?

Sports and athleisure retailer JD Sports Fashion (LSE: JD) was a stock market darling for years. Lately, it’s been pretty ugly.

I bought the shares for 114p a couple of months after its November 2023 profit warning, which was triggered by struggling consumers, unseasonable weather and heavy retailer discounting. That purchase taught me an enduring lesson. One profit warning is often followed by another, so it’s usually worth waiting until more of the bad news comes out before diving in.

What went wrong at JD Sports?

JD was also hit by a lack of exciting new products from key supplier Nike, which accounts for more than 40% of its sales. The acquisition of US sportswear retailer Hibbett in 2024 expanded JD’s reach but added integration costs and complexity just as trading conditions deteriorated.

As the shares went backwards, I averaged down at 99p in January 2025 and 80p two months later. With the shares around 92p today, my overall loss has shrunk from more than 30% at one point to roughly 8%. I’d love to get back into the black.

JD is the best-performing FTSE 100 stock over the last month though, climbing almost 27%. So what brought that on? I’d like to say the recovery has been fuelled by a spectacular improvement in trading, but it hasn’t.

Half-year results on 23 September showed a 20% fall in underlying pre-tax profit, while like-for-like sales declined 2.8%. However, the board maintained full-year profit before tax guidance of £700m to £800m, which softened the blow.

JD Sports also reported a stronger net cash position of £168m, against £125m of net debt (excluding lease liabilities) one year earlier. It’s also running a £200m share buyback programme, cancelling the shares to reduce supply and support the price. But that price is still down 2% over the last year, and 55% over five.

What’s the outlook?

I’m surprised by the recent bounce. With inflation rising, I’d expected consumer stocks to struggle for some time to come. So is JD Sports worth considering today?

At times, the stock has traded on a dirt-cheap price-to-earnings ratio of just six or seven. After the recent jump, the P/E has nudged up to 10.8x. But that’s not exactly demanding for an international retailer with opportunities to grow.

I wouldn’t dive in expecting the recent momentum to continue. JD has produced flashes of hope before, only to disappoint. Its core youth demographic continues to struggle, Nike needs to kick on, and retailers are competing fiercely on price.

I think JD Sports is worth considering with a long-term view. If tempted, maybe feed money in gradually, taking advantage of any dips rather than chasing a sudden rally. It may slow after the recent fun so no, I wouldn’t say it’s the very best stock to buy right now.

I’d be more tempted by this FTSE 100 growth stock to consider. After a brilliant multi-year run it’s fallen 25% since June, and might be a better recovery play…

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Harvey Jones owns shares in JD Sports.