In this article, we will look at the 10 Most Undervalued Blue Chip Stocks to Buy According to Hedge Funds.
On July 24, Emily Roland, Manulife John Hancock Investments co-chief investment strategist, appeared on CNBC’s ‘Power Lunch’ to talk about why it is now time to make profits from equity investments, where to invest money, and more.
She stated that the market right now is finding opportunities where there is an intersection of solid technical trends. According to her, momentum has by far been the best-performing factor this year. However, it is essential to combine that with quality, which entails looking for stocks that have a great return on equity, good free cash flows, and the ability to maintain margins in times of pressure.
READ ALSO: 11 Most Oversold Energy Stocks To Buy Right Now and 10 Most Profitable Biotech Stocks to Invest in Now.
That is thus leading her to be overweight in sectors like tech, communication services, healthcare, and utilities. Roland further stated that markets are at an all-time high, and this is an opportune time to take profits in the riskier corners of the market. It is therefore prudent to redeploy assets into high-quality stocks that can ward off margin pressure.
With these market trends in view, let’s look at the most undervalued blue chip stocks to buy according to hedge funds.
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Our Methodology
We reviewed financial media reports and ETFs to compile an initial list of blue chip stocks with a forward P/E below 15 and selected the top 10 stocks with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of number of hedge fund holders.
Note: All data was recorded on July 28.
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 Most Undervalued Blue Chip Stocks to Buy According to Hedge Funds
10. Amgen Inc. (NASDAQ:AMGN)
Forward P/E: 14.69
Number of Hedge Fund Holders: 69
Amgen Inc. (NASDAQ:AMGN) is one of the most undervalued blue chip stocks to buy according to hedge funds. On July 21, UBS analyst Trung Huynh raised the firm’s price target on Amgen Inc. (NASDAQ:AMGN) to $326 from $315 while keeping a Neutral rating on the shares.
The firm told investors in a research note that it expects Amgen Inc. (NASDAQ:AMGN) to deliver a small beat in its Q2 results after two consecutive solid quarterly beats. However, it also continues to believe that the rare disease products may be bumpy.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and markets human therapeutics. It delivers new therapies for patients with complex cancers, especially in areas with significant unmet needs.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E: 13.45
Number of Hedge Fund Holders: 82
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the most undervalued blue chip stocks to buy according to hedge funds. On July 21, UBS raised the firm’s price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $165 from $145, keeping a Neutral rating on the shares.
The firm told investors in a research note that it expects a modest upside bias to the company’s Q3 results in a backdrop showing solid signs of tariff-related pull-ins for Android and Apple units in the quarter.
However, it also added that it does not expect this momentum to be sustained into the second half of the year as pull-ins usually wane, primarily because the end consumption for smartphones and PC has failed to get any better.
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry, including 3G, 4G, and 5G wireless connectivity and high-performance and low-power computing, including on-device AI.
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