As I type, the FTSE 100 is up over 6% in 2025 so far. As decent as the performance is, I reckon quite a few stocks still offer great value for risk-tolerant, long-term-focused Fools. Here are two that particularly catch my eye.
False start
Having tumbled to a multi-year low in April, shares in JD Sports Fashion (LSE: JD) seemed to be turning a corner in recent weeks. However, this period of cautious optimism for holders was brought to a swift end following the release of a Q1 trading update.
On 21 May, JD revealed a 2% drop in sales while also warning that higher prices in the US — thanks to Donald Trump’s tariffs — would likely hit demand. Considering the company makes roughly 40% of its money from this part of the world, sentiment was always going to be hit.
Opportunity knocks
Analysts are already pencilling in a fall in pre-tax profit this year. However, there’s a chance that the final numbers prove even worse than expected. The lack of any buying activity from directors since January doesn’t exactly smack of confidence either.
Then again, management appears to be doing what it can to bring the firm through this tricky time. This includes controlling its cost base and sourcing goods from a range of countries.
Given its multi-brand, multi-channel strategy, I think we could see a strong recovery when consumer confidence returns. If one of the major brands it sells, Nike, is simultaneously able to get its mojo back, we could be off to the races.
That might seem like a big ask as things stand. But the price-to-earnings (P/E) ratio of just 7 suggests an awful lot of bad news is already priced in.
Heavy faller
Another top-tier stock that has the potential to be a great contrarian buy is global distributor Bunzl (LSE: BNZL). However, a dollop of patience might be required.
This usually-very-reliable FTSE 100 stock lost a quarter of its value last month after cutting full-year guidance and suspending its share buyback. Underlying revenue is now expected to be “broadly flat“, driven primarily by “softness” across its North American businesses. Operating margins will also come in under 8% (compared to 8.3% in 2024).
The worrying thing is that these projections didn’t take into account any consequences for economic growth from the aforementioned US tariffs. So, this sticky patch could be prolonged, hence the huge sell-off.
Temporary wobble?
All this has at least succeeded in bringing the valuation right down. A P/E of 14 is definitely more attractive than the five-year average P/E of 19. The shares also yield 3.2% with dividends expected to be easily be covered by profit (at least for now).
Again, nothing is nailed on when it comes to investing and at least some diversification feels prudent. But a lack of interest from short sellers — those who bet a share price has further to fall — and very healthy buying from directors implies this might be a temporary wobble.
As boring as the items that Bunzl supplies are (think food packaging, cleaning supplies and face masks), they’re also essential for businesses to operate effectively.
All this leads me to think the shares might be worth considering.
