5 Cheap Blue Chip Stocks To Buy

In this article, we will be taking a look at 5 cheap blue chip stocks to buy. To read our detailed analysis of blue chip companies, you can go directly to see the 12 Cheap Blue Chip Stocks To Buy.

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 66

P/E ratio as of January 25: 10.28

Chevron Corporation (NYSE:CVX) is an energy company engaged in integrated energy and chemicals operations globally. The company is based in San Ramon, California.

An Overweight rating was reiterated on Chevron Corporation (NYSE:CVX) shares on January 3 by Barclays analyst Jeanine Wai.

On January 20, the price of crude oil was around $85 per barrel, which is up from price levels in 2021. Energy investors see an upside to oil and natural gas because of higher demand in 2023, meaning Chevron Corporation (NYSE:CVX) has room to outperform on the top line. Analysts thus expect the company to climb higher, as Barclays’ price target of $212 on the stock shows, compared to its current share price of $179.08.

There were 66 hedge funds long Chevron Corporation (NYSE:CVX) in the third quarter. Their total stake value was $27.1 billion.

Madison Funds, managed by Madison Investment Management, mentioned Chevron Corporation (NYSE:CVX) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.

Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)