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.
8. The Kroger Co. (NYSE:KR)
Forward P/E Ratio: 14.19
Number of Hedge Fund Holders: 68
The Kroger Co. (NYSE:KR) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On August 5, Michael Lasser of UBS maintained a Hold rating on The Kroger Co. (NYSE:KR) with a price target of $74.
The analyst noted that he sees the company taking steps towards improving its operations under the interim CEO, Ron Sargent. These include enhancing store offerings, e-commerce, and pricing strategies. However, analyst Lasser believes that the company faces strong competition from Walmart, Costco, and Amazon’s growing grocery presence, which is causing pressure on the company’s potential to gain market share.
He notes that as a result of promotional activities and tougher sales comparisons in the second half of the year, the margins might come under pressure. However, despite the challenges, The Kroger Co. (NYSE:KR) is investing in key growth areas and working to streamline its business, which improves its long-term prospects.
The Kroger Co. (NYSE:KR) is a food and drug retailer operating supermarkets, pharmacies, and fuel centers across the United States.
7. Verizon Communications Inc. (NYSE:VZ)
Forward P/E Ratio: 9.45
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 5, the Board of Directors of Verizon Communications Inc. (NYSE:VZ) announced a quarterly dividend increase to 69 cents per share. This represents a 1.25 cent increase from the previous quarter and will be paid on November 3, 2025, to shareholders of record as of October 10, 2025.
This marks the 19th consecutive annual increase in dividend by the company. The CEO of Verizon Communications Inc. (NYSE:VZ), Hans Vestberg, noted that the increase highlights the company’s strong balance sheet and operational performance. He emphasized the company’s commitment to shareholders and its ongoing efforts to lead in network superiority.
Verizon Communications Inc. (NYSE:VZ) is a major telecommunications company. It provides wireless and wireline communication services, including broadband internet through 4G and 5G networks.
6. Wells Fargo & Company (NYSE:WFC)
Forward P/E Ratio: 13.42
Number of Hedge Fund Holders: 75
Wells Fargo & Company (NYSE:WFC) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On August 20, Wells Fargo & Company (NYSE:WFC) announced a $1 million investment to support small businesses in South Dakota, targeting rural and tribal communities. Wall Street has been bullish on the stock since the announcement.
Management noted that the money will be split evenly between Akiptan and GROW South Dakota. Akiptan is a Native-led financial institution focused on agriculture, whereas GROW is a statewide economic development group helping small businesses grow.
Several analysts have reiterated their bullish stance. For instance, earlier on August 31, John Pancari from Evercore ISI reiterated a Buy rating on Wells Fargo & Company (NYSE:WFC) while raising the price target from $91 to $94. More recently, on September 4, Scott Siefers from Piper Sandler also reiterated a Buy rating on the stock with a price target of $87.
Wells Fargo & Company (NYSE:WFC) is a financial services firm offering banking, investment, mortgage, and lending products.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E Ratio: 13.44
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 8, QUALCOMM Incorporated (NASDAQ:QCOM) announced expanding its collaboration with Google Cloud to enhance in-car experiences using agentic AI.
The partnership integrates Google Cloud’s Automotive AI Agent, powered by Google’s Gemini models, with Qualcomm’s Snapdragon Digital Chassis solutions. Management noted that the goal is to help automakers build advanced, multimodal AI agents that operate both on the vehicle’s edge devices and in the cloud.
Both companies aim to deliver combined solutions to enable automakers to create AI agents that go beyond simple commands to deliver conversational, personalized interactions. The technology supports key use cases like navigation, media, and vehicle controls, while shortening development time through an optimized reference architecture and prebuilt tools.
QUALCOMM Incorporated (NASDAQ:QCOM) and Google have a long history of automotive collaboration, starting in 2016 with embedded Android systems powered by Snapdragon.
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational wireless technologies like 3G, 4G, and 5G. The company also designs and supplies integrated circuits and system software used in mobile devices, automotive systems, IoT, and networking products.
4. AT&T Inc. (NYSE:T)
Forward P/E Ratio: 14.41
Number of Hedge Fund Holders: 83
AT&T Inc. (NYSE:T) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 4, Laurent Yoon from Bernstein raised the price target on AT&T Inc. (NYSE:T) from $31 to $32, while reiterating a Buy rating on the stock.
The analyst based his bullish sentiment on the company’s recent acquisition of a large amount of low and mid-band spectrum from Echostar. He believes that this deal will improve AT&T Inc. (NYSE:T)’s wireless network and boost its Fixed Wireless Access (FWA) services.
Yoon noted that although the acquisition was expensive, it is key to strengthening its mid-band portfolio. He believes it will help the company gain more market share in broadband and wireless and expects the company to use this to grow new broadband subscribers rapidly and advance its convergence strategy.
AT&T Inc. (NYSE:T) is a global provider of telecommunications and technology services that offers wireless, wireline, and broadband services to consumers and businesses.
3. Pfizer Inc. (NYSE:PFE)
Forward P/E Ratio: 8.05
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 8, Pfizer Inc. (NYSE:PFE) and BioNTech announced positive topline results from their Phase 3 trial of the LP.8.1-adapted monovalent COMIRNATY COVID-19 vaccine for the 2025-2026 season.
The study evaluated adults aged 65 and older, along with adults aged 18 to 64, having at least one risk condition for severe COVID-19. The vaccine showed a strong immune response by increasing neutralizing antibodies targeting the LP.8.1 sublineage of SARS-CoV-2 by at least four times within 14 days of vaccination. Notably, the safety profile of the vaccine was consistent with prior studies, and no new safety concerns were identified. These positive findings reinforce pre-clinical data and support the recent FDA approval of the vaccine for the targeted groups.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company focused on discovering, developing, and manufacturing healthcare products.
2. Merck & Co., Inc. (NYSE:MRK)
Forward P/E Ratio: 9.48
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 7, Merck & Co., Inc. (NYSE:MRK) and Daiichi Sankyo announced positive Phase 2 results for Ifinatamab deruxtecan in treating extensive-stage small cell lung cancer.
The trial showed a confirmed objective response rate of 48.2% in 137 previously treated ES-SCLC patients. Management noted that 3 complete responses, 63 partial responses, and 54 cases of stable disease were seen. Moreover, the disease control rate was 87.6% with a median duration of response being 5.3 months and a median overall survival of 10.3 months.
The drug under trial is a potential first-in-class B7-H3-directed antibody-drug conjugate, which is being jointly developed by Merck & Co., Inc. (NYSE:MRK) and Daiichi Sankyo. ES-SCLC is an aggressive cancer with a poor prognosis and limited treatment options after chemotherapy.
Merck & Co., Inc. (NYSE:MRK) is a global healthcare company focused on developing and delivering prescription medicines, vaccines, and animal health products.
1. Citigroup Inc. (NYSE:C)
Forward P/E Ratio: 12.45
Number of Hedge Fund Holders: 102
Citigroup Inc. (NYSE:C) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 3, Truist analyst John McDonald raised the firm’s price target on Citigroup Inc. (NYSE:C) from $99 to $105, while keeping a Buy rating on the shares.
The analyst noted that the company’s shares have struggled since the financial crisis because its ROTCE has not stayed above 10% consistently. This has set a high execution bar for Citigroup Inc. (NYSE:C) to meet its revenue and expense targets.
However, despite these challenges, McDonald believes that the company has a credible plan to improve its profitability. He also appreciated management’s efforts towards simplifying the business and satisfying regulators.
Citigroup Inc. (NYSE:C) exceeded Wall Street expectations during its fiscal second quarter of 2025. The company posted a revenue of $21.67 billion, up 7.59% year-over-year and ahead of expectations by $706.36 million. Moreover, the EPS of $2.04 also topped the consensus by $0.45.
Citigroup Inc. (NYSE:C) is a global financial services company offering various banking and investment products.
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