5 Undervalued Blue Chip Stocks to Buy Now

4. 3M Company (NYSE:MMM)

Share Price as of June 6: $146.35

Number of Hedge Fund Holders: 51

3M Company (NYSE:MMM) is a Saint Paul, Minnesota-based diversified industrial conglomerate involved in worker safety, healthcare, and consumer goods. The company is a member of the esteemed Dividend King List, which comprises only 39 companies that have increased their annual dividends for the past 50 consecutive years or more. 3M Company (NYSE:MMM) has a dividend yield of 4.09% as of June 6.

3M Company (NYSE:MMM) is facing near-term headwinds as it anticipates a $300 million decline in revenue and 30 cents fall in EPS during the current quarter due to the supply chain challenges caused by the lockdown in China. Furthermore, the company is facing an overhang due to the settlement of the PFAS cases. However, 3M Company (NYSE:MMM) is expected to move beyond these short-term challenges and offer a significant upside potential to investors. These developments have caused 3M Company (NYSE:MMM) stock to trade at a forward adjusted P/E multiple of 13.65x. This reflects a 17.3% discount against the sector and a near 30% discount against the average five-year forward P/E multiple.

3M Company (NYSE:MMM) was held by 51 hedge funds as of Q1 2022.