Ever wondered why the number of Stocks and Shares ISA investors making millions with UK shares has detonated recently?
The explosion has its roots in the 2008 global financial crisis, a period when UK shares collapsed in value. Back then, investors took the opportunity to load up on top-quality stocks that had been whoppingly oversold by panicked investors. They then sat back and raked in a fortune as these shares rebounded in value during the subsequent economic upturn.
UK share investors have a similar opportunity to get stinking rich following the 2020 stock market crash. And here’s a possible millionaire-maker I’d buy for my own Stocks and Share ISA.
On the charge
JD Sports Fashion is one UK share that’s made investors boatloads of cash in recent years. Even taking into account its drop during the 2020 stock market crash, the sportswear retailer’s shares are still around 318% more valuable than they were in autumn 2015. This is because the athletic leisure (‘athleisure’) market has been the fastest-growing sub-segment of the fashion market in recent years.
JD Sports has made the most of this by expanding rapidly in Europe and Asia and, more recently, opening its doors in the US. Recent industry data suggests athletic sportswear sales have rocketed still further too, as Covid-19 bolstered demand for comfortable, multi-purpose clothing.
Indeed, ASOS chief executive Nick Beighton recently commented that the company would “have probably placed more [orders for] casual wear [and] more sportswear” given the strength of consumer demand in recent months.
A FTSE 100 favourite
That said, sales at FTSE 100-quoted JD Sports haven’t been that cheery of late. Smacked by stores closures earlier in 2020, revenues in the six months to July dropped 7% year-on-year, latest data from the UK share showed. But there have been some reasons to celebrate. Turnover in the US has outstripped all expectations, for example. And JD’s performance in the increasingly-important online retail segment has also impressed.
The Footsie firm is expected to see annual earnings tank 33% in the current fiscal year (to January 2021). However, brokers expect JD Sports to come roaring back with a 59% bottom-line rise in fiscal 2022. And this leaves the UK share trading on a forward-looking price-to-earnings growth (PEG) ratio of 0.4. Any reading below 1 is usually considered to be a bargain.
Helping you get rich with UK shares
The JD Sports share price has recovered acres of ground since the stock market crash of late February and early March. But it still clearly provides plenty of bang for your buck. This is a brilliant UK share for value hunters, and one I’d happily buy and hold in my Stocks and Shares ISA for years.
But it’s just one cut-price corker I think’s worthy of serious attention today. By browsing The Motley Fool’s huge library of exclusive reports you can discover even more top-class UK shares to buy today. They could even help you become an ISA millionaire.
