In this article, we discuss 10 Cheap Blue Chip Stocks to Invest in Now.
Blue-chip stocks offer some of the best and most solid investment opportunities, as they are associated with large, well-established, and financially sound companies. The strong brand names stand out for their reputation in generating dependable earnings and returning value to shareholders.
Likewise, blue-chip stocks have played a significant role in the S&P 500’s bounce back and rally to record highs after a 19% slump between mid-February and early April. The rally in overall equity markets came as investors took advantage of deep pullbacks to bet on blue-chip stocks with solid underlying fundamentals and a proven track record of long-term growth.
Valuations remain stretched, with the S&P 500 trading at 24 times this year’s earnings and above the 10-year average price-to-earnings ratio of 20. Nevertheless, Mark Luschini, chief investment strategist at Janney Management, believes there is still room for additional growth with the S&P 500 expected to hit 6,600 in the near term.
“There is still room for the market to continue to advance,” he says. “But techs can’t continue to go up at the pace they have. As a consequence, brace for pullbacks.”
As the Trump administration begins to focus more on fiscal stimulus, such as tax cuts, the stock market outlook remains positive. Likewise, Federal Reserve Chair Jerome Powell’s hint at interest rate cuts continues to strengthen sentiments in the equity markets.
“We are now getting a rally due to less-punitive tariffs,” said Shannon Saccocia, chief investment officer of wealth at Neuberger Berman. “There is a more supportive tax environment, deregulation, and lower interest rates, too. That should mean continued momentum for a broadening-out trade.”
While valuations among blue-chip stocks have gotten out of hand, with many counters trading above historical norms, focus is slowly shifting at stocks trading below their fair value. Cheap blue-chip stocks with a price-to-earnings ratio of less than 15 could offer an easy way to ride the expected bull run.
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Our Methodology
To come up with our list of the cheap blue chip stocks to invest in now, we used Finviz screener and ETFs to scan for blue chip stocks. We focused on stocks with a market cap of more than $50 billion and that were popular among elite hedge funds in the second quarter of 2025. We narrowed our list to cheap blue chip stocks with a forward price to earnings multiple of less than 15 (as of August 31). Finally, we ranked the stocks in descending order based on the price-to-earnings multiple.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Cheap Blue Chip Stocks to Invest in Now
10. Wells Fargo & Company (NYSE:WFC)
Market Cap: $263.26 Billion
Forward Price to Earnings Ratio (P/E): 14.39
Number of Hedge Fund Holders: 75
Wells Fargo & Company (NYSE:WFC) is one of the cheap blue-chip stocks to invest in now. On August 28, the company established a new Medium-Term Note Program, Series Y, and a Subordinated Medium-Term Note Program, Series Z.
The unveiling of the new program is part of the bank’s efforts to optimize its financial operations, providing more flexibility in managing its debt portfolio. The medium-term notes will give the bank tools that enable companies to raise capital over a specified period.
The launch of the Series Y and Z will enable Wells Fargo to attract investors seeking stable returns through fixed-income securities. The introduction of the programs underscores the bank’s efforts to maintain a robust financial foundation while also providing attractive investment opportunities.
Wells Fargo & Company (NYSE:WFC) is a diversified financial services company offering banking, investments, mortgages, and consumer and commercial finance products and services to individuals and businesses. It provides services including checking and savings accounts, home and auto loans, credit cards, investment management, wealth management, and corporate finance through its Consumer Banking and Commercial Banking divisions.
9. Citigroup Inc. (NYSE:C)
Market Cap: $177.78 Billion
Forward Price to Earnings Ratio (P/E): 12.94
Number of Hedge Fund Holders: 102
Citigroup Inc. (NYSE:C) is one of the cheap blue-chip stocks to invest in now. On August 28, the bank’s data analytics and innovation team deployed two client communication assistants for its wealth advisory unit.
AskWealth is a generative artificial intelligence solution designed to provide advisory teams with market insights and research to answer client questions. On the other hand, Advisor Insights is intended to provide a market update dashboard featuring timely messages about market turns, portfolios, and current events.
Citi Wealth’s Data, Analytics & Innovation team expects the two solutions to help clients experience faster and deeper connections. The unveiling of the two solutions highlights how Citigroup is increasingly utilizing artificial intelligence solutions to streamline processes and improve customer experiences.
“These platforms will save hours for our advisors, bankers, and service teams while reinforcing for clients the personal and high-touch experience that is a tradition at our firm,” said Joe Bonanno, head of data, analytics, and innovation at Citi.
Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers. The Company’s services include investment banking, retail brokerage, corporate banking, and cash management products and services. Citigroup serves customers globally.
8. Toyota Motor Corporation (NYSE:TM)
Market Cap: $255.05 Billion
Forward Price to Earnings Ratio (P/E): 12.66
Number of Hedge Fund Holders: 18
Toyota Motor Corporation (NYSE:TM) is one of the cheap blue-chip stocks to invest in now. On August 28, the company reported higher global vehicle sales for July, driven by strong overseas demand, despite slowing home market demand.
The Japanese automaker sold 899,449 vehicles, representing a 4.8% year-over-year increase, marking its seventh consecutive month of sales growth. The increase was driven mainly by strong demand in North America and Europe. On the other hand, sales in Japan decreased by 0.9% to approximately 118,000 units.
Toyota is also increasingly shipping more electric cars, as they accounted for more than a third of global sales at 327,000 in July. The Japanese automaker is ramping up production to meet backlogged orders and strengthen its push into the electric vehicle space.
Toyota Motor Corporation (NYSE:TM) designs, manufactures, assembles, and sells vehicles, including passenger cars, vans, and commercial vehicles, along with associated parts and accessories globally. Beyond traditional cars, Toyota is transforming into a mobility company focusing on connected, automated, shared, and electrified (CASE) technologies.
7. PDD Holdings Inc. (NASDAQ:PDD)
Market Cap: $170.67 Billion
Forward Price to Earnings Ratio (P/E): 12.56
Number of Hedge Fund Holders: 65
PDD Holdings Inc. (NASDAQ:PDD) is one of the cheap blue-chip stocks to invest in now. On August 26, analysts at Benchmark lifted the stock’s price target to $160 from $128 while reiterating a ‘Buy’ rating. The positive stance is reflected in the stock’s strong momentum, with a 32% year-to-date return.
Additionally, the research firm remains buoyed by the company’s solid second-quarter results, whereby revenue increased 19.92% despite slowing domestic performance and muted international operations. PDD Holdings’ profitability has also exceeded expectations, with net income reaching $13.67 billion over the last 12 months
According to Benchmark, PDD Holdings has demonstrated a disciplined balance between growth initiatives and spending controls, more so than initially anticipated. Additionally, PDD’s differentiated group buying business model has strengthened its market position in its holdings following the exit of key competitors.
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates e-commerce platforms, primarily Pinduoduo and Temu, focused on bringing more businesses and people into the digital economy.
6. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)
Market Cap: $75.01 Billion
Forward Price to Earnings Ratio (P/E): 12.56
Number of Hedge Fund Holders: 19
Mitsubishi UFJ Financial Group Inc. (NYSE:MUFG) is one of the cheap blue-chip stocks to invest in now. On August 24, the company confirmed plans to buy or partner with overseas money managers as it seeks a larger share of the global investment market.
Mitsubishi UFJ Financial has set its sights on merging with a private asset specialist in the US or Europe as it seeks to expand its foothold in areas such as the booming credit market or infrastructure financing. The two regions are seen as highly prospective markets for potential deals.
“We definitely are keeping an eye on any potential opportunities… It might be a partnership, it might be an acquisition, nothing is decided as of this point,” said Oleg Kapinos, London-based head of global distribution strategy for Mizuho’s investments arm AM One.
Mitsubishi UFJ Financial joins a growing list of Japanese financial institutions that are increasingly eyeing deals abroad to offset sluggish domestic growth. An aging and shrinking population back home is posing significant risks, prompting the government and regulators to pursue reforms that can establish Japan as a leading asset management center.
Mitsubishi UFJ Financial Group Inc. (NYSE:MUFG) is a global financial services company that offers a comprehensive range of products and services, including commercial and investment banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.
5. The Toronto-Dominion Bank (NYSE:TD)
Market Cap: $128.02 Billion
Forward Price to Earnings Ratio (P/E): 11.95
Number of Hedge Fund Holders: 23
The Toronto-Dominion Bank (NYSE:TD) is one of the cheap blue-chip stocks to invest in now. On August 28, the company delivered strong third-quarter fiscal 2025 results, driven by robust client activity and disciplined execution, affirming the strength of its diversified business model.
The Canadian Personal and Commercial Banking unit delivered a record net income of $1.95 billion, a 4% year-over-year increase, attributed to record revenues of $5.24 billion, a 5% increase. The unit also achieved a record year-to-date digital sales in personal checking and CDs combined. The robust revenue underscores strong demand for digital offerings.
Overall, Toronto Dominion Bank posted a diluted loss of $1.89 a share compared to a loss of $0.14 delivered last year. However, adjusted earnings per share totaled $2.20, compared to $2.05 in the same quarter the previous year. Revenue in the quarter totaled $15.61 billion, surpassing analysts’ estimates of $13.73 billion.
The Toronto-Dominion Bank (NYSE:TD) is a financial services company that offers a full range of products and services to individuals and businesses, including personal and commercial banking, wealth management, insurance, and wholesale banking. It provides services including checking and savings accounts, credit cards, mortgages, auto financing, investment services, and financial advice.
4. HSBC Holdings plc (NYSE:HSBC)
Market Cap: $221.79 Billion
Forward Price to Earnings Ratio (P/E): 9.70
Number of Hedge Fund Holders: 17
HSBC Holdings plc (NYSE:HSBC) is one of the cheap blue-chip stocks to invest in now. On August 28, the company increased its Australian dollar liquidity by issuing A$1.75 billion in senior unsecured notes under an A$10 billion debt issuance program.
The A$1.75 billion in senior unsecured notes are to be issued in three tranches of A$450 million fixed-to-Floating Rate Senior Unsecured Notes due August 28, 2031. It will also issue A$600 million unsecured notes due 2036 and A$700 million floating unsecured notes due 2031.
By listing the notes on Euronext Dublin, HSBC is targeting international investors and providing secondary market access. Additionally, issuing fixed or floating-rate bonds maturing in 2031 and 2036 allows the bank to diversify its balance sheet.
HSBC Holdings plc (NYSE:HSBC) is a multinational universal bank offering a wide range of services, including retail, commercial, corporate, and institutional banking, wealth management, investment, asset management, and insurance to individuals, businesses, and governments worldwide.
3. Banco Santander, S.A. (NYSE:SAN)
Market Cap: $141.5 Billion
Forward Price to Earnings Ratio (P/E): 9.51
Number of Hedge Fund Holders: 18
Banco Santander, S.A. (NYSE:SAN) is one of the cheap blue-chip stocks to invest in now. On August 28, Banco Santander, S.A. announced the repurchase of 5.18 million shares between August 21 and August 27, spending approximately €42 million. The buybacks, executed across venues including XMAD and CEUX, were priced between €8.06 and €8.29 per share. This brings total spending under the current buyback initiative to €297.73 million, or 17.5% of the program’s maximum allocation.
The initiative, launched on July 30, 2025, is part of Santander’s broader capital management strategy. The bank has now repurchased roughly 14.4% of its outstanding shares since 2021. The largest single-day transaction occurred on August 26, with 1.57 million shares bought on XMAD at an average price of €8.14. All purchases comply with EU market abuse regulations.
Banco Santander, S.A. (NYSE:SAN) is a global financial institution offering a wide range of services to individuals, businesses, and public entities. Operating through five key segments—Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance, and Payments—the bank serves clients across international markets.
2. Merck & Co., Inc. (NYSE:MRK)
Market Cap: $210.11 Billion
Forward Price to Earnings Ratio (P/E): 9.42
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the cheap blue-chip stocks to invest in now. On August 27, the company confirmed it has initiated the HERTHENA-Breast04 phase 3 clinical trials in partnership with Daiichi Sankyo.
Dosing of the first patient with patritumab deruxtecan for metastatic hormone receptor-positive, HER2-negative breast cancer has already started. The randomized trial is to evaluate patritumab deruxtecan against the physician’s choice of treatment in patients with an advanced metastatic cancer.
The trial aims to enroll 1,000 patients across Asia, Europe, North America, and South America. Its dual primary endpoints are progression-free survival, as determined by blinded independent central review, and overall survival.
In 2023, Merck entered into a collaboration agreement with Daiichi Sankyo to jointly develop and commercialize patritumab deruxtecan and other antibody drug conjugates.
Merck & Co., Inc. (NYSE:MRK) is a global science and technology company that operates in three main business areas: Healthcare, focusing on developing innovative therapies for diseases; Life Science, providing tools and services for scientific research and biotech production; and Electronics, creating materials for the semiconductor and display industries.
1. TotalEnergies SE (NYSE:TTE)
Market Cap: $136.53 Billion
Forward Price to Earnings Ratio (P/E): 9.37
Number of Hedge Fund Holders: 18
TotalEnergies SE (NYSE:TTE) is one of the cheap blue-chip stocks to invest in now. On August 25, TotalEnergies, Equinor, and Shell announced the successful transport and injection of CO₂ from Heidelberg Materials’ cement plant in Brevik, Norway to Northern Lights’ storage site in Øygarden.
The CO₂ was stored 2,600 meters beneath the seabed, marking a major milestone for Europe’s carbon capture and storage (CCS) efforts. “We are entering a new phase for the CCS industry in Europe,” said Arnaud Le Foll, SVP of Carbon Neutrality at TotalEnergies.
Northern Lights is the world’s first commercial CO₂ transport and storage service, with its initial 1.5 Mt/year capacity fully booked by industrial clients across Norway and continental Europe. A second phase, approved in March 2025, will expand capacity to over 5 Mt/year by 2028. Customers include Hafslund Celsio, Yara, Ørsted, and Stockholm Exergi, reflecting growing demand for scalable decarbonization solutions.
TotalEnergies SE (NYSE:TTE) is a global energy company active in 120 countries, producing and marketing oil, biofuels, natural gas, hydrogen, renewables, and electricity. With over 100,000 employees, the company prioritizes sustainability and is advancing carbon storage projects like Northern Lights to help industries reduce emissions and transition to cleaner energy.
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