The FTSE 100‘s filled with phenomenal value stocks that can go on to unlock enormous wealth for shareholders in the long run. The challenge for investors is figuring out which of these companies are actually bargains and which ones are traps?
In April 2026, expert analysts have quite a few names on their lists. But there’s one stock in particular that the team at Peel Hunt has described as “chronically undervalued”. So much so, it’s predicting the stock could skyrocket 169%!
So what’s this business? And should I rush to buy?
A contrarian value play
Peel Hunt’s high conviction value stock pick in 2026 is JD Sports Fashion (LSE:JD.). And the investment idea’s fairly straightforward.
JD Sports has been navigating turbulent market conditions of late, with weaker discretionary consumer spending that’s subsequently led to lacklustre earnings. And this negative impact was amplified by the group’s strong reliance on Nike-branded goods, which have fallen out of fashion of late, particularly its footwear.
However, despite these challenges, the business remained highly cash generative. As such, management’s guiding for £400m of free cash flow generation in its 2026 fiscal year, which ended in February.
Despite this, the share price has continued to trend downward to the point where Peel Hunt analysts believe the market’s pricing the business as if it’s in a structural decline rather than a cyclical one.
That’s why, with JD remaining the partner-of-choice for global mega-brands as well as showing early signs of organic growth recovery, a fantastic buying opportunity may have emerged. And it seems JD leadership agrees, following the launch of a new £200m share buyback programme.
So with a share price target of 200p versus the stock’s current 74p price, is this a no-brainer? Or has Peel Hunt missed something?
What to watch
Peel Hunt’s currently the most bullish institutional investor following this business. And while there are a few other analyst teams who are optimistic, the overall consensus is that JD Sport shares are a Hold, not a Buy. Why is that?
There are three core concerns:
- Despite being cash generative, JD Sports carries just over £3bn of lease liabilities that behave similarly to debt.
- Rising labour costs are compressing operating profit margins.
- The fashion trend cycle may be shifting away from athleisure.
Combined, these factors obscure the company’s near-term earnings visibility. And it’s this uncertainty that’s keeping JD Sport shares down in value stock territory. So what’s the verdict?
The bottom line
In my opinion, Peel Hunt might be onto something. While I think 200p is a very ambitious share price target, there’s no denying that at its current valuation, the market’s pricing this business very pessimistically on what appears most likely to be temporary headwinds rather than permanent ones.
That opens the door to a potentially rapid and powerful upward re-rating if and when JD makes it through the storm. However, the timing of this cycle shift remains a mystery.
For my personal portfolio, I’m not looking for exposure to the sports/fashion sector. But for those seeking to diversify, JD Sport does appear to offer an interesting value proposition for investors willing to be patient. So it might be worth a closer look.
