2 industry-leading value stocks investors should consider buying

These value stocks are at the top of their respective industries, and look like current bargains with the potential to soar once more.

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I reckon it’s rare to come across value stocks that are leaders in their respective industries. Well, that seems to be the case with Safestore (LSE: SAFE) and JD Sports Fashion (LSE: JD.).

Here’s why I think investors should be considering buying some shares now, before both potentially climb.

Safestore

The FTSE 250 incumbent is the largest self-storage business in the UK. However, this dominant market position hasn’t been able to insulate it from issues in recent times.

Safestore shares have meandered up and down in the past 12 months, but have ended up down 4%. At this time last year, they were trading for 858p, compared to current levels of 819p.

A tougher economic climate, including higher inflation, interest rates, and a cost-of-living crisis, have put pressure on net asset values, rent collection, performance, and growth aspirations. These are ongoing risks I’ll keep an eye on.

The business is looking to take its dominant market position in the UK, and attempting to garner the same role in Europe. The self-storage market on the continent is under-penetrated. So although it could be trickier to achieve this position during the current climate, the growth opportunity in the long term makes the shares more attractive today.

The shares look like a bargain to me on a price-to-earnings ratio of eight. Plus, a dividend yield of 3.7% sweetens the investment case, for me.

Despite short-term issues to navigate at the moment, I can’t help thinking that Safestore shares and returns could rise once volatility dissipates.

JD Sports Fashion

As one of the best growth stories of recent decades in my eyes, I’m a bit surprised JD Sports shares are in bargain territory. Nevertheless, I think it’s an opportunity not to be missed. I personally own shares, and will be looking to snap up some more as soon as I can.

The shares have been hurt by economic issues that have hurt consumer spending, performance, and investor sentiment. They’re down a whopping 22% from 153p at this time last year, to current levels of 119p.

Continued economic pressure is a worry, as consumers battle with higher essential bills. Plus, one of JD’s biggest partners, sportswear giant Nike, has had its own issues. This is probably why JD shares haven’t fared well either. I’ll keep an eye on this moving forward.

Conversely, JD Sports shares haven’t looked this attractive for a while, in my view. From a valuation perspective, they look cheap on a price-to-earnings ratio of just 10. Plus a dividend yield of 1.3% helps the investment case.

The firm’s continued expansion into new markets, as well as the burgeoning sector it operates in, make me believe this blip could be temporary. Taking a closer look at the latter, the sportswear and leisurewear market has exploded in recent years. It’s only set to continue to grow rapidly. As JD continues to corner further markets across the globe, once economic volatility subsides, there could be some lucrative times ahead.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Sumayya Mansoor has positions in JD Sports Fashion. The Motley Fool UK has recommended Safestore Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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