In this piece, we will take a look at the five most undervalued blue chip stocks to buy according to hedge funds. If you want to take a look at what makes a stock ‘blue chip’, then check out 12 Most Undervalued Blue Chip Stocks To Buy According To Hedge Funds.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Investors In Q2 2023: 111
Share Price Upside: 16%
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare benefits provider. The firm’s customers are currently facing some troubles, as one of South Carolina’s largest healthcare providers recently informed customers that UnitedHealth Group Incorporated (NYSE:UNH) will no longer provide coverage.
As of Q2 2023 end, 111 of the 910 hedge funds part of Insider Monkey’s database had invested in UnitedHealth Group Incorporated (NYSE:UNH). Out of these, the firm’s largest investor is Rajiv Jain’s GQG Partners since it owns 4.8 million shares that are worth $2.3 billion.
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Follow Unitedhealth Group Inc (NYSE:UNH)
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Investors In Q2 2023: 122
Share Price Upside: 15%
Salesforce, Inc. (NYSE:CRM) is a customer relationship management products and services provider. It facing a bit of a controversy these days as a former vice president alleges that the firm lied about the capabilities of a real time customer profile system and fired him for pointing it out.
Insider Monkey’s second quarter of 2023 survey covering 910 hedge funds revealed that 122 had held a stake in the company. Salesforce, Inc. (NYSE:CRM)’s biggest hedge fund shareholder is Ken Fisher’s Fisher Asset Management through a stake worth $2.9 billion.
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3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Investors In Q2 2023: 135
Share Price Upside: 14%
Apple Inc. (NASDAQ:AAPL) is the largest technology company in the world. The firm is currently gearing up for its 2023 iPhone 15 launch, and the shares are rated Buy on average with an average share price target of $201.
During this year’s second quarter, 135 out of the 910 hedge funds part of Insider Monkey’s database had invested in Apple Inc. (NASDAQ:AAPL). Warren Buffett’s Berkshire Hathaway is the company’s largest investor among these, courtesy of an unbelievable stake of $177 billion which represents more than half of the firm’s investment portfolio.
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2. Visa Inc. (NYSE:V)
Number of Hedge Fund Investors In Q2 2023: 171
Share Price Upside: 14%
Visa Inc. (NYSE:V) is a financial technology products and services provider. It is the first stock on our list that is rated Strong Buy on average by analysts, and the stock is undervalued by 14% based on the average share price target. Investment bank JPMorgan is the latest to promote the shares, as it raised Visa Inc. (NYSE:V)’s share price target to $296 from $265 and kept an Overweight rating for the shares.
After scouring through 910 hedge funds for their June quarter of 2023 shareholdings, Insider Monkey discovered that 171 had held a stake in the company. Visa Inc. (NYSE:V)’s biggest hedge fund shareholder in our database is Chris Hohn’s TCI Fund Management since it owns 17.7 million shares that are worth $4.2 billion.
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1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Investors In Q2 2023: 300
Share Price Upside: 20%
Microsoft Corporation (NASDAQ:MSFT) is another consumer technology behemoth. While NVIDIA is dominating the hardware end of the AI hype, Microsoft is one of the strongest players on the software side. It beat analyst second quarter EPS estimates by 14 cents and the shares are rated Strong Buy on average.
300 of the 910 hedge funds part of Insider Monkey’s Q2 2023 database had invested in Microsoft Corporation (NASDAQ:MSFT). Out of these, Michael Larson’s Bill & Melinda Gates Foundation Trust is the company’s largest stakeholder, courtesy of a $13.3 billion investment.
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Disclosure: None. You can also take a look at Top 10 Stocks To Buy In 10 Different Sectors for the Next 3 Months and 15 Worst Performing Healthcare Stocks in 2023.
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