10 Cheap Blue Chip Stocks to Buy According to Hedge Funds

6. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 81

Forward P/E as of April 18: ~14.6x

Chevron Corporation (NYSE:CVX) is engaged in integrated energy and chemicals operations.  Analyst Roger Read from Wells Fargo reiterated a “Buy” rating on the company’s stock. The analyst’s rating is being supported by the company’s strategic moves, which include the purchase of Hess shares, demonstrating confidence in future growth. Notably, between January and March 2025, Chevron Corporation (NYSE:CVX) purchased 15,380,000 shares of Hess Corporation common stock, implying ~4.99% of the shares of Hess common stock outstanding as of January 31, 2025. Amidst the macroeconomic uncertainties, including tariff disputes and volatile oil prices, Chevron Corporation (NYSE:CVX)’s stable cash flow and capital allocation strategies offer a robust foundation for continued investment, says Read.

As per Morningstar, Chevron Corporation (NYSE:CVX) is well-placed to deliver increased returns and greater FCF due to its oil-leveraged portfolio’s volume growth and margin expansion, improved operations, and cost reductions. The company has started oil and natural gas production from the Ballymore subsea tieback in the deepwater Gulf of America. Ballymore exhibits another step towards Chevron Corporation (NYSE:CVX)’s goal to produce 300,000 net barrels per day of oil equivalent from the Gulf in 2026. Ballymore brings additional production online without building a new standalone offshore platform. This reduces the development costs and can fuel increased returns for shareholders.