In this article, we discuss the 11 Most Undervalued Blue Chip Stocks to Buy Now.
As we enter 2026, U.S. equities are expected to enter a phase marked by several complexities following the outsized gains in 2025. According to Reuters, 2026 offers a landscape shaped by geopolitics, domestic politics, and shifting monetary policy. At the same time, investors appear more cautious about risks that may be erupting outside the obvious hotspots.
The market is eying central bank independence amid the much-anticipated nomination of a new Federal Reserve chair in early January, as Jerome Powell’s term ends in May. The focus heightens as President Donald Trump pressures the Fed to cut rates. Meanwhile, analysts caution that excessive easing could worsen inflation and lead to a disruptive policy reversal later.
Furthermore, uncertainty about the policy outlook is heightened by the U.S. midterm elections in November and by pending Supreme Court rulings on emergency tariffs. Additionally, geopolitical tensions, especially after U.S. actions in Venezuela, are adding to broader risk assessments.
Amid this macroeconomic environment, U.S. equities are projected to rise in 2026, albeit at a slower pace. According to a Reuters poll, respondents expect a higher chance of a correction if highly valued AI-driven stocks come under pressure. With bond yields and debt levels expected to remain elevated and investors looking beyond large tech plays, companies with stable, durable earnings and relative value are coming into focus, leading us to our list of undervalued blue-chip stocks.
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Our Methodology
To curate our list of the most undervalued blue chip stocks to buy now, we screened large-cap stocks with a market capitalization of over $100 billion. From this initial list, we filtered out stocks with positive analyst sentiment, solid financials, and sound balance sheets. Next, we selected stocks from this list that are trading at least 25% below the S&P 500’s forward price-to-earnings of 22.1x as of January 7, 2026. Finally, we incorporated each stock’s upside potential based on Wall Street consensus as of January 6, 2026, market close, and ranked them accordingly. We also considered hedge fund sentiment surrounding each stock, using Insider Monkey’s hedge fund database, which tracks 978 stocks as of Q3 2025.
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11. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward Price-to-Earnings Multiple: 13.81
Upside Potential: 11.20%
Number of Hedge Fund Holders: 61
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the most undervalued blue chip stocks to buy now.
On January 7, 2026, reports highlighted that analysts are increasingly confident in Gilead Sciences, Inc. (NASDAQ:GILD)’s short- and medium-term outlook, driven by optimism around the company’s HIV franchise. On that day, UBS analyst Michael Yee upgraded the stock from ‘Neutral’ to ‘Buy’ and raised the firm’s price target from $112 to $145, according to The Fly. The analyst expects strong HIV pre-exposure prophylaxis sales from Yeztugo, which could potentially boost both revenue and earnings. At the same time, the analyst expects visibility into the company’s outer-year growth trajectory to improve. Furthermore, Yee highlighted the company’s focus on prevention-based HIV therapies, which reflects a strategic evolution of the company’s core antiviral business toward more durable, growth-oriented demand drivers.
This positive update was accompanied by another on the same day, with Citi’s analyst Geoff Meacham raising the firm’s target from $135 to $140 and maintaining a ‘Buy’ rating.
The bullish analyst sentiment was reinforced earlier, on December 22, 2025, when Gilead Sciences, Inc. (NASDAQ:GILD) exercised its option to exclusively license Assembly Biosciences’ long-acting HSV helicase-primase inhibitor programs, ABI-1179 and ABI-5366. The deal, supported by positive Phase 1b data and once-weekly oral dosing potential, extends the company’s goal of expanding its antiviral pipeline into areas with significant unmet need and limited competition. This move supports the company’s long-term growth optionality beyond HIV.
Gilead Sciences, Inc. (NASDAQ:GILD), a biopharmaceutical company, focuses on the development and commercialization of innovative medicines across HIV, liver disease, oncology, hematology, and inflammatory conditions.
10. Shell plc (NYSE:SHEL)
Forward Price-to-Earnings Multiple: 11.07
Upside Potential: 11.80%
Number of Hedge Fund Holders: 48
Shell plc (NYSE:SHEL) is included in our list of the most undervalued blue chip stocks to buy now.
On January 7, 2026, TheFly reported that Morgan Stanley reduced its price target on Shell plc (NYSE:SHEL) from 3,007 GBp to 2,811 GBp while maintaining an ‘Overweight’ rating. This update follows the company’s recent strategic growth wins.
On January 7, 2026, Reuters reported that state-owned Petrovietnam Gas awarded its first-ever term LNG supply tender to Shell plc (NYSE:SHEL). This development marks a key milestone in Vietnam’s gas market evolution. According to the five-year agreement, Shell will be supplying roughly 400,000 metric tons of LNG annually from 2027 to 2031 on a delivered ex-ship basis to the Thi Vai terminal. With the country starting to import LNG only in 2023 and having relied exclusively on the spot market so far, the deal marks a structural shift toward long-term supply security.
Furthermore, the company’s long-term production outlook was reinforced by Reuters on January 6, 2026, which reported that Shell plc (NYSE:SHEL) agreed to acquire a 35% stake in offshore Blocks 49 and 50 in Angola from Chevron. This move reinforces the company’s established goal of sustaining oil output into the 2030s, alongside growing gas production by 1% through 2030.
Shell plc (NYSE:SHEL), a global energy company, produces oil and natural gas. Its operations span LNG, upstream exploration, refining, chemicals, marketing, and the growth of renewables and energy solutions businesses worldwide.
9. Verizon Communications Inc. (NYSE:VZ)
Forward Price-to-Earnings Multiple: 8.41
Upside Potential: 15.40%
Number of Hedge Fund Holders: 60
Verizon Communications Inc. (NYSE:VZ) is one of the most undervalued blue chip stocks to buy now.
As of January 7, 2026, roughly 40% of analysts covering Verizon Communications Inc. (NYSE:VZ) are bullish. The consensus price target is $46.50, representing a 15.40% upside. However, the analyst confidence appears to be growing with the company’s network-led strategy translating into steadier growth and defensible cash flows.
On December 18, 2025, Verizon Communications Inc. (NYSE:VZ) finalized a commercial agreement with Kodiak AI to deliver 5G, LTE, and IoT connectivity for Kodiak’s autonomous trucking platform. With this move, Verizon puts its fast, reliable networks and ThingSpace IoT platform at the core of Kodiak’s mission-critical AI-driven logistics operations. The company will enable Kodiak’s trucks to operate with assisted autonomy and will allow managers to monitor and control the fleet in real time. Verizon aims to integrate its network into emerging, high-value enterprise use cases.
At the same time, Verizon Communications Inc. (NYSE:VZ) was revisited by Raymond James two days earlier, according to TheFly. The investment firm reiterated its ‘Outperform’ rating with a $47 price target. The firm’s bullish stance reflects the company’s dividend appeal and potential subscriber growth. On the same day, Verizon Communications Inc. (NYSE:VZ) partnered with Array Digital Infrastructure in a multi-year deal. The partnership gave Verizon access to roughly 4,400 U.S. towers, improving coverage, deployment speed, and long-term cost efficiency.
Verizon Communications Inc. (NYSE:VZ), a leading U.S. telecommunications company, provides 5G and 4G wireless, fiber, and fixed wireless broadband, and advanced enterprise technology solutions built on nationwide network infrastructure.
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