5 Undervalued Blue Chip Stocks To Buy According to Wall Street Analysts

In this piece, we will take a look at five undervalued blue chip stocks to buy according to Wall Street analysts. If you want to check out our introduction to blue chip stocks, then take a look at 12 Undervalued Blue Chip Stocks To Buy According to Wall Street Analysts.

5. Honeywell International Inc. (NASDAQ:HON)

Share Price Upside: 17%

Honeywell International Inc. (NASDAQ:HON) is an industrial equipment and materials company that serves the needs of several industries such as aerospace, pharmaceuticals, and warehousing. Despite a slowdown in the industrial space, it beat analyst Q2 2023 EPS estimates and the shares are rated Buy on average.

During Q1 2023, 58 of the 943 hedge funds polled by Insider Monkey had held a stake in Honeywell International Inc. (NASDAQ:HON). John Overdeck and David Siegel’s Two Sigma Advisors is the firm’s largest investor with a stake worth $379 million.

4. Merck & Co., Inc. (NYSE:MRK)

Share Price Upside: 18%

Merck & Co., Inc. (NYSE:MRK) is a global pharmaceutical giant with tens of thousands of employees worldwide. The firm has beaten analyst EPS estimates in all four of its latest quarters. Its average share price target is $124.32 and the stock is rated Buy on average.

After scouring through 943 hedge funds for their March quarter of 2023 investments, Insider Monkey discovered that 75 had bought the firm’s shares. Merck & Co., Inc. (NYSE:MRK)’s biggest investor in our database is Ken Fisher’s Fisher Asset Management since it owns 12.3 million shares that are worth $1.3 billion.

3. Microsoft Corporation (NASDAQ:MSFT)

Share Price Upside: 20%

Microsoft Corporation (NASDAQ:MSFT) is a technology giant with a strong presence in both consumer and enterprise computing. The firm beat analyst second quarter EPS estimates by a wide margin, and it is also one of the strongest beneficiaries of the ongoing wave of artificial intelligence technologies.

During this year’s first quarter, 289 of the 943 hedge funds part of Insider Monkey’s database had held a stake in Microsoft Corporation (NASDAQ:MSFT). Michael Larson’s Bill & Melinda Gates Foundation Trust is the firm’s largest hedge fund shareholder with a massive $11.3 billion stake.

2. The Walt Disney Company (NYSE:DIS)

Share Price Upside: 20%

The Walt Disney Company (NYSE:DIS) is an iconic entertainment firm known for its theme parks and film studios. The firm is facing quite a bit of trouble these days as a strike in Hollywood has affected studio operations quite a bit. Its shares are rated Buy on average.

Insider Monkey’s first quarter of 2023 survey covering 943 hedge funds revealed that 95 had bought and invested in the firm’s shares. The Walt Disney Company (NYSE:DIS)’s biggest investor among these is Nelson Peltz’s Trian Partners with a $592 million investment.

1. Verizon Communications Inc. (NYSE:VZ)

Share Price Upside: 22%

Verizon Communications Inc. (NYSE:VZ) is a telecommunications firm with more than a hundred thousand employees. It beat second quarter EPS estimates and the stock is rated Buy on average but the score tilts towards hold.

59 of the 943 hedge funds part of Insider Monkey’s Q1 2023 database had held a stake in Verizon Communications Inc. (NYSE:VZ). Out of these, the largest shareholder is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital since it owns $358 million worth of shares.

Disclosure: None. You can also take a look at 10 Oversold NASDAQ Stocks to Buy and 10 Best Artificial Intelligence Stocks Under $10.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Follow Insider Monkey on Twitter