5 Cheap Blue Chip Stocks To Buy

In this article, we will be taking a look at 5 cheap blue chip stocks to buy. To read our detailed analysis of blue chip companies, you can go directly to see the 12 Cheap Blue Chip Stocks To Buy.

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 66

P/E ratio as of January 25: 10.28

Chevron Corporation (NYSE:CVX) is an energy company engaged in integrated energy and chemicals operations globally. The company is based in San Ramon, California.

An Overweight rating was reiterated on Chevron Corporation (NYSE:CVX) shares on January 3 by Barclays analyst Jeanine Wai.

On January 20, the price of crude oil was around $85 per barrel, which is up from price levels in 2021. Energy investors see an upside to oil and natural gas because of higher demand in 2023, meaning Chevron Corporation (NYSE:CVX) has room to outperform on the top line. Analysts thus expect the company to climb higher, as Barclays’ price target of $212 on the stock shows, compared to its current share price of $179.08.

There were 66 hedge funds long Chevron Corporation (NYSE:CVX) in the third quarter. Their total stake value was $27.1 billion.

Madison Funds, managed by Madison Investment Management, mentioned Chevron Corporation (NYSE:CVX) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.

Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)

4. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 75

P/E ratio as of January 25: 9.28

Exxon Mobil Corporation (NYSE:XOM) is another energy company on our list. It is based in Irving, Texas.

Paul Cheng at Scotiabank upgraded shares of Exxon Mobil Corporation (NYSE:XOM) from Sector Perform to Outperform on January 17.

While Chevron is a cheap energy pick, Exxon Mobil Corporation (NYSE:XOM) is cheaper. The company is currently trading at a P/E ratio of 9.28, while Chevron is trading at 10.28. Scotiabank has also raised its price target on the company as of January 17 from $120 to $135. Relative to its current share price of $113.21, this represents a significant upside.

Exxon Mobil Corporation (NYSE:XOM) was found among the 13F holdings of 75 hedge funds in the third quarter, with a total stake value of $5.5 billion.

3. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 62

P/E ratio as of January 25: 8.78

Verizon Communications Inc. (NYSE:VZ) is a communication services company based in New York. Is offers communications, technology, information, and entertainment products.

Cowen’s Gregory Williams reiterated an Outperform rating on Verizon Communications Inc. (NYSE:VZ) shares on January 25.

Verizon Communications Inc.’s (NYSE:VZ) P/E ratio of 8.78 shows strong net earnings. This, along with the company’s free cash flow yield of about 10% as of this January, represents the company’s ability to increase its direct shareholder returns while reducing its debt. The company is also currently trading below Cowen’s price target of $49, with its $40.33 share price.

Our hedge fund data shows 62 funds long Verizon Communications Inc. (NYSE:VZ) in the third quarter. Their total stake value was $1.4 billion.

Matrix Asset Advisors, an asset management company, mentioned Verizon Communications Inc. (NYSE:VZ) in its third-quarter 2022 investor letter. Here’s what the firm said:

“We sold the entire position in Verizon Communications Inc. (NYSE:VZ), which was a disappointing investment, on concerns that the company is losing market share in a very competitive business and because we believed we had better use for the funds elsewhere.”

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 77

P/E ratio as of January 25: 8.57

Pfizer Inc. (NYSE:PFE) is a healthcare and pharmaceutical company. It is based in New York.

An Overweight rating was placed on Pfizer Inc. (NYSE:PFE) shares on January 17 by analyst Mohit Bansal at Wells Fargo.

Pfizer Inc.’s (NYSE:PFE) current P/E ratio of 8.57 stands at almost a 10-year low for the stock. This, and the company’s new products which are expected to contribute about $20 billion in revenue by 2030, make it clear that it is currently operating at a discount.

Pfizer Inc. (NYSE:PFE) had 77 hedge funds long its stock in the third quarter. Their total stake value was $2.4 billion.

1. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 47

P/E ratio as of January 25: 5.53

Ford Motor Company (NYSE:F) is an automobile manufacturing company. It is based in Dearborn, Michigan.

JPMorgan’s Ryan Brinkman holds an Overweight rating on Ford Motor Company (NYSE:F) shares as of January 25.

Ford Motor Company (NYSE:F) has a very low P/E ratio of 5.53, showing that at present, the company’s shares are cheaply valued for a company of its reputation. The company’s position in the electric vehicle sector, where sales grew by 223% between December 2021 and December 2022, makes investors optimistic about growth prospects in the long run. The expected growth for the company relative to its current share price shows that Ford Motor Company (NYSE:F) shares are currently trading at a significant discount.

In total, 47 hedge funds were long Ford Motor Company (NYSE:F) in the third quarter, with a total stake value of $1.2 billion.

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