13 Most Undervalued Blue Chip Stocks To Buy According To Analysts

7. Chevron Corporation (NYSE:CVX)

Forward P/E, as of September 22: 13.0

Analyst Upside Potential, as of September 22: 17%

Number of Hedge Fund Holders: 64

Chevron Corporation (NYSE:CVX) ranks seventh on our list of the most undervalued blue chip stocks according to analysts. The energy and petroleum company is headquartered in California, United States, and is present in more than 180 countries.

In the second quarter of 2024, Chevron Corporation (NYSE:CVX) grew global production by 11%, year-over-year. During the same quarter, the company forged alliances in Namibia, Brazil, Equatorial Guinea, and Angola to expand its exploration base and enhance its acreage position. As for the United States, Chevron’s (NYSE:CVX) net oil-equivalent production increased by  353,000 barrels a day from a year ago. Again, the company attributes such to its successful acquisitions and strategic alliances.

Chevron Corporation (NYSE:CVX) is also making strides in clean and renewable energy. Previously in May, the company operated a gas turbine on a 60% hydrogen fuel blend, significantly reducing emissions. Moreover, the company also owns a 16.5-megawatt wind farm that can power more than 13,000 homes annually.

Overall, Chevron Corporation (NYSE:CVX) reported revenue worth $51.8 billion, up by 4.67% year-over-year, and ahead of market consensus by $453.45 million, in this quarter. The stock has huge potential in the clean energy industry, making it one of the most undervalued blue chip stocks to buy according to analysts.

Analysts are bullish on CVX and their 12-month median price target of $170 points to a 17% upside from current levels. In Q2 2024, there were 64 hedge funds that held positions in the stock with total stakes amounting to $22.41 billion. As of June 30, Berkshire Hathaway was the largest shareholder with a position worth $18.55 billion.

Diamond Hill Capital’s Diamond Hill Large Cap Strategy stated the following regarding Chevron Corporation (NYSE:CVX) in its fourth quarter 2023 investor letter:

“Other bottom contributors included Chevron Corporation (NYSE:CVX), Carrier Global and Becton, Dickinson. Shares of integrated oil and gas company Chevron were pressured as global oil production is growing — particularly in the US, which has now surpassed its past production levels — in turn pressuring oil prices and company profit margins.”