10 Most Undervalued Blue Chip Stocks to Buy According to Hedge Funds

2. Alibaba Group Holding Limited (NYSE:BABA)

Forward P/E: 13.73

Number of Hedge Fund Holders: 125

Alibaba Group Holding Limited (NYSE:BABA) is one of the most undervalued blue chip stocks to buy according to hedge funds. On July 21, Bernstein analyst Robin Zhu maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) with a price target of HK$141.00.

Alibaba Group Holding Limited (NYSE:BABA) reported notable results for the March quarter 2025, with revenue undergoing a 7% year-over-year increase to RMB 236,454 million ($32,584 million).

Income from operations also underwent a significant 93% year-over-year increase to RMB28,465 million ($3,923 million). Management attributed this growth to a drop in non-cash share-based compensation expenses and an increase in adjusted EBITA.

Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.