Great article. JD is executing very well in a macro period where many brand retailers are struggling. Their investments into growth will inevitably pay off when consumer demand picks up again with rates coming down. Once the economy becomes more favourable, there's no reason why they cannot resume their strong growth trajectory especially with their upcoming acquisition or Courir which'll strengthen their Europe presence (a region where theyre growing very strongly). I believe they can grow earnings to 15p/share in 2-3 years which assuming a 15 multiple, which equate to a pps of 225p. Therefore I think your valuation estimate on JD is far too conservative.
even if I am being too conservative the fact that its still cheap says it all. It is a nice company that will do well as you said. one of the best run company. I am interested to see how they integrate Hibbett Sports
Thanks I appreciate it. I have been trying to find that out but nothing as of yet. I originally thought it was for acquisition but nothing to confirm that.
Great article. JD is executing very well in a macro period where many brand retailers are struggling. Their investments into growth will inevitably pay off when consumer demand picks up again with rates coming down. Once the economy becomes more favourable, there's no reason why they cannot resume their strong growth trajectory especially with their upcoming acquisition or Courir which'll strengthen their Europe presence (a region where theyre growing very strongly). I believe they can grow earnings to 15p/share in 2-3 years which assuming a 15 multiple, which equate to a pps of 225p. Therefore I think your valuation estimate on JD is far too conservative.
even if I am being too conservative the fact that its still cheap says it all. It is a nice company that will do well as you said. one of the best run company. I am interested to see how they integrate Hibbett Sports
3-5 years rather. But my thesis still remains.
I’m glad I have them in my portfolio. Great write up as always my friend!
thanks no problem. I didn't know you owned them to be honest.
Superb write up once again! Thank you for sharing your wisdom Wes!
With shares outstanding increasing, is there any idea what JD are doing with that capital aqquired from diluting share holders?
Thanks I appreciate it. I have been trying to find that out but nothing as of yet. I originally thought it was for acquisition but nothing to confirm that.