The FTSE 100 is down 3.5% this month as UK shares suffer losses due to market uncertainty. But as the Footsie had such a great start to the year, the minor dip has only brought it to a six-week low.
As a value investor, I’m more interested in high-quality shares that are at their lowest in years – 30% to 50% down from their 52-week high.I’ve found three that fit the bill but I’m interested in just one of them.JD Sports FashionIt’s JD Sports (LSE: JD.
), a leading British multinational retailer specialising in sports fashion. It has a significant global presence and historically strong performance. Revenue was over £10bn in the latest results, with almost £1bn profit and a decent 9.
3% operating margin.So why is the stock down 55% from its 52-week high?The business struggled during the 2024 holiday season, reporting a 1.5% decline in like-for-like revenues across November and December.
A “challenging and volatile market” with increased promotional activity. Consequently, the company downgraded its full-year pre-tax profit forecast by almost 10%, to between £915m and £935m.Will it recover?Through it all, JD still focused on aggressive expansion, acquiring US company Hibbett for $1bn.
This strategic move is part of a plan to increase its global market share, which could equate to long-term growth – so there’s a decent chance and I’m considering it.PersimmonPersimmon (LSE: PSN) is one of the UK’s leading housebuilders. For FY24, it reported a 7% increase i.
