5 Undervalued Blue Chip Stocks Hedge Funds Are Piling Into

In this article we discuss the 5 undervalued blue chip stocks hedge funds are piling into. If you want to read our detailed analysis of these stocks, go directly to the 10 Undervalued Blue Chip Stocks Hedge Funds Are Piling Into.

5. The Goldman Sachs Group, Inc. (NYSE: GS)

Number of Hedge Fund Holders: 77  

Forward PE Ratio: 8.62  

The Goldman Sachs Group, Inc. (NYSE: GS) is a New York-based financial services company founded in 1869. It is ranked fifth on our list of 10 undervalued blue chip stocks hedge funds are piling into. The stock has returned 42% to investors in the past year. The bank offers various wealth management services and is often a prime broker in mergers and acquisitions. It also offers banking services and market research. The firm markets financial planning, investment management, and a range of other services. 

On June 9, The Goldman Sachs Group, Inc. (NYSE: GS) stock was given a Buy rating by investment advisory Jefferies with a price target of $450, implying an upside potential of 17% on the back of expected increase in revenue streams and better capital allocation in the coming weeks and months. 

On June 1, news agency Reuters reported that The Goldman Sachs Group, Inc. (NYSE: GS) was preparing to increase real estate investments in Japan by 100%. The share price of the financial services jumped more than 2% after the news report was published. 

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eagle Capital Management is a leading shareholder in the firm with 4.7 million shares worth more than $1.5 billion. 

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and The Goldman Sachs Group, Inc. (NYSE: GS)  was one of them. Here is what the fund said:

“Financial services firm Goldman Sachs is a best-in-class franchise with a premier brand that attracts top talent and sustains market share across its businesses. We believe this has helped Goldman weather recent market volatility. In addition to de-levering risk-weighted assets, Goldman is also growing its digital investment footprint through the expansion of features on its Marcus Invest platform. The company’s stability—and ability to grow its brand even in tough times—has kept us invested over the long term.”