In this article, we will discuss the 10 Worst Blue Chip Stocks to Buy.

As per Niamh Brodie-Machura, Co-Chief Investment Officer at Fidelity International, the effect of tariffs is expected to shift lower as and when the deals are made, supply chains adapt, and there is some adjustment in consumption patterns with lower tariffed goods witnessing relatively increased demand. However, there continues to be a period of increased volatility, and investors who plan to add risk should be careful. The environment is more of an opportunity to better position portfolios for resilience amidst uncertainty.

Market Rotation and Opportunity Areas

Contrary to expectations, BlackRock, in its release dated April 23, highlighted that international equities outperformed the US equities by 11% in 2025. The US growth stocks fell by 10%, and US value stocks increased by 2%. This transition demonstrates a significant market rotation throughout geography and style as value stocks continue to gain favor over growth stocks. Within the US market, value equities, mainly in defensive sectors such as healthcare, have been performing well, says the asset manager.

BlackRock also added that the narrowing of the earnings gap and the industry’s attractive characteristics, like innovation and the growth of aging populations, have been fueling the performance. Notably, active management strategies are advantageous when it comes to navigating the fluctuating markets.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

What Should Investors Do?

BlackRock believes that the US large-cap value equities are the only major US index having positive returns YTD through March 31. Among the value equities, its investors are spotting opportunities in defensive sectors. In the current fast-moving political environment, primarily new trade policies, value equities can possess an additional tailwind. This stems from their ability to fetch a greater share of revenue from the US.

Elsewhere, if tariff discussions continue longer than expected or the average tariff rates differ from the current expectations, it is important to make portfolio changes accordingly, says Fiduciary Trust (a privately held wealth management firm). Notably, the capex spending on AI is expected to remain strong, and AI will likely fuel long-term productivity. The firm also opines that changes will be made to bank capital ratio rules, enabling them to enhance lending and/or increase stock buybacks. Both of these measures can improve earnings.

Amidst such trends, let us now have a look at the 10 Worst Blue Chip Stocks to Buy.

Our Methodology

To list the 10 Worst Blue Chip Stocks to Buy, we scanned through the holdings of SPDR® S&P 500® ETF Trust and chose the ones that declined between 15%-30% on a YTD basis. After getting an extended list of stocks, we selected the ones popular among hedge funds. Finally, the stocks were ranked in ascending order of their hedge fund holdings, as of Q4 2024.

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 Worst Blue Chip Stocks to Buy

10. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 56

% Decline on a YTD Basis: ~29.7%

Target Corporation (NYSE:TGT) operates as a general merchandise retailer. Analyst Mavis Hui from DBS reiterated a “Buy” rating on the company’s stock, keeping the price objective at $188.00. The analyst’s rating is backed by factors demonstrating the company’s healthy performance and strategic initiatives. A YoY increase in adjusted EPS was aided by a recovery in customer traffic and gross margins’ improvements, added the analyst. Target Corporation (NYSE:TGT)’s emphasis on omni-channel growth remains a critical factor in the analyst’s rating. The company continues to enhance its online and offline sales integration.

Furthermore, the investments in store remodeling and partnerships with well-established brands such as Apple and Disney can fuel both online and in-store sales, says the analyst. Target Corporation (NYSE:TGT)’s efficient use of physical stores as logistics centers led to reduced delivery costs, which can offset the potential margin pressures, added Hui. Despite worries related to the inflationary pressures, Target Corporation (NYSE:TGT)’s robust customer loyalty and operational efficiency improvements support a favourable outlook for growth in future earnings. The company’s digital initiatives can offer valuable data insights, allowing it to optimize inventory management, personalize offerings, and improve operational efficiency. Target Corporation (NYSE:TGT)’s investments in supply chain enhancements and inventory management systems can also result in operational efficiency.

9. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 59

% Decline on a YTD Basis: ~22.6%

United Parcel Service, Inc. (NYSE:UPS) is a package delivery and logistics provider that provides transportation and delivery services. Analyst Fadi Chamoun from BMO Capital maintained a “Buy” rating on the company’s stock, having a price objective of $125.00. This rating highlights the company’s strategic initiatives and financial performance. Despite the tough macroeconomic environment, United Parcel Service, Inc. (NYSE:UPS)’s Q1 2025 results marginally surpassed expectations. The analyst opines that this was aided by healthy performance in the US Domestic segment.

Furthermore, its emphasis on cost reduction and capital reallocation towards higher-margin supply chain solutions, like healthcare, can mitigate macroeconomic headwinds and enhance its overall profitability. Chamoun also added that, despite some short-term pressures, United Parcel Service, Inc. (NYSE:UPS)’s strategic transition from lower-margin B2C volumes towards higher-value-added products can be beneficial for the company’s margins and ROIC over the long run. Overall, such strategic steps and targeted cost savings strengthen the analyst’s confidence in the company’s future performance.

Elsewhere, Wells Fargo & Company reissued an “Equal weight” rating and gave a price objective of $98.00 on the company’s stock on April 22. River Road Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“As of December 31, the portfolio held 29 positions, up four positions from Q3. During Q4, the largest sector increase was 736 bps within industrials, while the largest decrease was -276 bps within consumer discretionary. We established five new positions and eliminated one position

We also initiated a position in United Parcel Service, Inc. (NYSE:UPS) (Cl B) (UPS, 3.0 conviction), the world’s largest package delivery company, which handles over six billion packages annually and can reach 90% of the world’s gross domestic product (GDP) within a day. After years of elevated network investments to expand capacity, UPS has refocused its strategy on growing return on invested capital (ROIC). We believe the stock will rerate higher as margins, which we believe have bottomed, are expected to expand with the price per package growing faster than the cost per package. In the interim, investors collect a 5% dividend, which has grown in 21 out of 24 years since UPS went public. The dividend is supported by healthy free cash flow and an investment grade balance sheet with ~1x net leverage.”

8. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 66

% Decline on a YTD Basis: ~21.4%

Hewlett Packard Enterprise Company (NYSE:HPE) is a supplier of IT infrastructure products and services. Bank of America Securities analyst Wamsi Mohan maintained a “Buy” rating on the company’s stock, setting a price objective of $20.00. The analyst’s rating is backed by several factors demonstrating Hewlett Packard Enterprise Company (NYSE:HPE)’s potential for value creation. The analyst believes that the involvement of activist investor Elliott Management exhibits a belief in the company’s undervaluation as compared to peers. Notably, Reuters reported that Elliott Investment Management built a stake of over $1.5 billion in the company.

Hewlett Packard Enterprise Company (NYSE:HPE)’s investment in liquid cooling technology for AI servers provides a strong opportunity for growth in the competitive AI hardware market. With AI workloads becoming complex and power-intensive, the traditional air cooling solutions have been reaching limits. Therefore, liquid cooling provides numerous advantages that can fuel Hewlett Packard Enterprise Company (NYSE:HPE)’s success. Through managing heat more effectively, liquid-cooled systems have the ability to decrease energy consumption. This can lead to reduced operating costs for customers. Overall, the company continues to operate in a dynamic industry environment. The broader enterprise IT market continues to exhibit signs of recovery, with higher infrastructure spending as well as digital transformation initiatives. Such trends are likely to bode well for the company’s core business segments.