In this article, we will look at the 10 Blue Chip Stocks with the Lowest PE Ratios.
On September 9, Seema Shah, Chief Global Strategist at Principal Asset Management, appeared on CNBC for an interview to discuss her view of the labor market and its impact on the equity market. She noted that the latest job number revision is largely backward-looking, meaning that it does not depict the current situation, but rather reflects changes up to March earlier this year. Shah highlighted that unless the revision is unexpectedly large, it is unlikely to move the markets significantly. Moreover, the Fed’s decision to cut rates is already priced in by the market; therefore, the report won’t shift narratives to a greater extent.
In addition, Shah explained the current market dynamics, highlighting that bond yields have fallen sharply due to expectations of multiple Fed rate cuts over the next 12 to 18 months. The market sees a cooling labor market but resilient broader economic data. This combination leads investors to anticipate ongoing Fed support, which should keep economic growth and corporate earnings on a positive trajectory, thus supporting equity markets.
While talking about the potential sectors to invest in if the rate cut occurs, Shah expressed optimism about financials benefiting from a steeper yield curve and ongoing economic growth through 2025 and 2026. She also likes the technology sector, along with companies that have strong balance sheets, cash flow, and proven business models.
With that, let’s take a look at the 10 blue-chip stocks with the lowest PE ratios.
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Our Methodology
To curate the list of 10 blue-chip stocks with the lowest PE ratios, we sifted through reputable financial media to aggregate a list of blue-chip stocks. Next, we cross-checked the forward PE ratios of each stock from Seeking Alpha and shortlisted those with forward PE below 15. Lastly, we ranked these stocks based on the number of hedge fund holders, sourced from Insider Monkey’s Q2 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Blue Chip Stocks with the Lowest PE Ratios
10. Amgen Inc. (NASDAQ:AMGN)
Forward P/E Ratio: 13.46
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 8, Amgen Inc. (NASDAQ:AMGN), along with Kyowa Kirin preliminary top-line results from the ASCEND study of Rocatinlimab in moderate to severe atopic dermatitis. Rocatinlimab is an experimental T-cell therapy targeting the OX40 receptor, which aims to rebalance immune responses in AD.
The ASCEND study includes about 2,600 adults and adolescents who completed earlier ROCKET trials. The analysis is focused on adults who completed 24 weeks of Rocatinlimab in a parent trial and continued treatment for 32 additional weeks in ASCEND. Rocatinlimab was given every 4 or 8 weeks at doses of 150 mg or 300 mg.
The goal of the study was to assess the safety profile. The common side effects included upper respiratory infections, aphthous ulcers, headache, influenza, cough, and rhinitis, all of which were consistent with earlier studies. Moreover, the study also showed a low rate of treatment discontinuation due to adverse effects. In terms of efficacy, adults who responded after 24 weeks and continued Rocatinlimab showed sustained benefits at one year, with improvements seen in skin clearance, itching, disease extent, and severity.
Amgen Inc. (NASDAQ:AMGN) is a global biotechnology company that discovers, develops, manufactures, and delivers innovative medicines for serious diseases.
9. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E Ratio: 12.81
Number of Hedge Fund Holders: 65
PDD Holdings Inc. (NASDAQ:PDD) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. The company released its fiscal second-quarter results for 2025 on August 25, topping Wall Street revenue and EPS consensus. Analysts have been bullish on the stock since its earnings release.
PDD Holdings Inc. (NASDAQ:PDD) delivered a revenue of $14.54 billion, up 6.69% year-over-year and ahead of expectations by $178.40 million. Moreover, the EPS of $3.09 was also ahead of consensus by $1.03. Management noted that they continued to invest in merchant support throughout the quarter to build a healthier, more sustainable platform ecosystem.
After the release, on August 26, Saiyi He from CMB International Securities reiterated a Buy rating on PDD Holdings Inc. (NASDAQ:PDD) and raised the price target from $134.5 to $146.3. On the same day, Fawne from Benchmark Co. also reiterated a Buy rating on the stock while raising the price target from $128 to $160.
PDD Holdings Inc. (NASDAQ:PDD) operates global e-commerce platforms connecting buyers, merchants, and manufacturers.
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