7 Cheap Blue Chip Stocks to Invest in Now

3. Apollo Global Management, Inc. (NYSE:APO)

Forward P/E Ratio: 17.75 

Earnings Growth This Year: 4.30%  

Number of Hedge Fund Holders: 79

Apollo Global Management, Inc. (NYSE: APO) is another cheap blue chip stock to invest in now. It is a prominent financial company that specializes in managing investments and providing retirement services. Asset management is one of its key businesses, it invests money on behalf of clients and generates returns through Yields, Equity, and other strategies.

The company also engages in Retirement services through its subsidiary called Athene Holding Ltd, where it offers products such as Annuities and Funding agreements. For years the main source of growth for the company has been its investment grade credit.

During the fiscal first quarter of 2024, the company reached record assets under management of $671 billion, with total inflows reaching $140 billion. Investors and analysts like the double revenue mix of Apollo Global Management, Inc. (NYSE:APO) which originates from its role as an asset manager and annuity provider.

The second quarter of 2024 was driven by record fee-related earnings of $516 million, resulting in total revenues of more than $6 billion. The fee-related performance was up almost 50% year-over-year driven by the wealth-focused products of the company.

Apollo Global Management, Inc. (NYSE: APO) invests on behalf of other clients and these clients are usually large organizations attached to top industries. Therefore, growth in infrastructure and energy transition-related industries is expected to boost the investment income for the company over the next decade.

AP was held by 79 hedge funds in Q2 2024, with total stakes worth $5.80 billion.

Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q2 2024 investor letter:

“Strength in Tech-Enabled Financials was broad based, led by gains from alternative asset manager Apollo Global Management, Inc. (NYSE:APO) and specialty insurer Arch Capital Group Ltd. Apollo continues to benefit from disruptive trends in financial services, most notably the shift of retirement assets into higher-yielding private credit given the company’s dual role as an asset manager and an annuity provider.”