In this article, we will look at the 10 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing.
Blue-chip stocks are great assets for investors looking for opportunities to grow their capital in the long term. Some call them steady oaks in the forest of finance. However, this steadiness is often tested when the broad market spirals out of control.
Over the past five days, blue-chip-heavy indices – the S&P 500 and the Dow – have posted substantial losses (as of June 19) due to market pressures. The S&P 500 has pared 0.48%, and the DJIA is down 1.32%.
Although CNN’s Fear and Greed Index indicates that the market is currently undecided on whether to be guided by fear or greed, experts think the scale may tip towards fear. Danni Hewson, head of financial analysis at AJ Bell, believes that investors hoping for a calmer market may wait longer. This is because the markets are being “buffeted by ‘Storm Donald’ as the US president’s trade policy continues to exert pressure on global companies.”
If the sentiment does switch to fear, chances are high that more blue-chip stocks will be undervalued. But in the meantime, here is a list of 10 undervalued blue-chip stocks that analysts recommend for smart investing.
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Our Methodology
To create this list, we combed through the US equity markets, focusing on blue-chip stocks. We defined a blue-chip company as one whose market capitalization is at least $50 billion. We also focused on stocks with a forward P/E less than 20 and analysts’ price target upside of more than 5%. We ensured that each stock is also popular among hedge funds. The ranking is in ascending order and based on the analysts price target.
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 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing
10. Wells Fargo & Company (NYSE:WFC)
Forward P/E as of June 19: 11.21
Analysts’ Price Target Upside as of June 19: 8.83%
Number of Hedge Fund Holdings as of Q1 2025: 88
Wells Fargo & Company (NYSE:WFC) is one of the 10 undervalued blue-chip stocks analysts recommend for smart investing. On June 18, i2i Logic, a fintech company, revealed a partnership with Wells Fargo to enhance the latter’s commercial banking services. The deal involves Wells Fargo leveraging the i2i Logic Client Intelligence Platform to deliver personalized insights to middle-market clients. The tool will harness Wells Fargo’s internal industry expertise with corporate and public data to deliver the objectives.
The i2i Logic Client Intelligence Platform will power the Wells Fargo Benchmark Intelligence. This tool generates numerous unique benchmarks to help clients assess their financial needs and identify suitable banking solutions. Wells Fargo expects the new solution to improve banker efficiency and client experience. The company is certain that the enhanced Wells Fargo Benchmark Intelligence will enable faster access to relevant insights and more tailored conversations.
i2i Logic’s technology is designed to streamline banker workflows and deepen client engagement. The platform is already in use across global time zones, including London, Melbourne, and New York.
Wells Fargo & Company (NYSE:WFC) is a diversified financial services firm. It provides banking, lending, investment, and wealth management services to individuals, small businesses, corporations, and institutions. Its products include checking and savings accounts, credit cards, mortgages, business loans, investment banking, and financial advisory services.
9. AT&T Inc. (NYSE:T)
Forward P/E as of June 19: 12.38
Analysts’ Price Target Upside as of June 19: 10.27%
Number of Hedge Fund Holdings as of Q1 2025: 87
AT&T Inc. (NYSE:T) is another stock on the list of 10 undervalued blue chip stocks analysts recommend for smart investing. On June 17, the company launched a new product, AT&T Business Voice. This is a cloud-based VoIP solution intended to retire traditional analog phone lines.
According to a statement, AT&T Business Voice has several capabilities, including converting analog signals to Internet Protocol (IP). This feature enables the solution to support critical lines like public safety phones, elevator phones, security systems, fire alarms, and fax machines. The FCC has approved the replacement solution for copper-based landlines.
Its key features include 24/7 remote monitoring, built-in battery backup, optional LTE wireless failover, spam and robocall blocking, and enhanced telephony tools. AT&T says the product’s target audience is small and medium-sized businesses (SMBs) seeking to modernize communications but want to retain existing equipment and phone numbers.
Commenting on the development, Melissa Arnoldi, EVP & GM of AT&T Business, said Business Voice “is more than an updated phone system. It’s a comprehensive solution that empowers small and medium-sized businesses to modernize their operations while maintaining reliability and security.”
AT&T Inc. (NYSE:T) is an American telecommunications and technology company. It provides consumers and enterprises with wireless and wireline services, broadband internet, and business connectivity solutions. The company’s key brands include AT&T, AT&T Fiber, and DirecTV.