7 Undervalued Blue Chip Stocks To Buy Right Now

3. Alibaba Group Holding Limited (NYSE:BABA)

Analyst Upside Potential: 15.79%

Forward P/E, as of September 24: 10.49

Number of Hedge Fund Holders:  91

Alibaba Group Holding Limited (NYSE:BABA) ranks 3rd in our list of the 7 undervalued blue chip stocks to buy right now. Alibaba Group Holding Limited (NYSE:BABA) has initiated a significant restructuring by dividing it into six business units, each with the potential for an independent IPO. This move is expected to unlock shareholder value. Q2 2024 saw steady performance from Alibaba Group Holding Limited (NYSE:BABA)’s core commerce business, and the cloud computing division continues to grow, supported by China’s push towards digital transformation.

In Q2 2024, Alibaba Group Holding Limited (NYSE:BABA) demonstrated steady performance, particularly in its core commerce business, while its cloud computing division continues to expand, benefiting from China’s digital transformation initiatives. This growth is supported by increasing demand for cloud services and e-commerce, positioning Alibaba Group Holding Limited (NYSE:BABA) favorably in these high-growth sectors.

Furthermore, Alibaba Group Holding Limited (NYSE:BABA)’s emphasis on cost management and strategic partnerships within China’s tech ecosystem enhances its recovery prospects, especially as the Chinese economy rebounds. Alibaba Group Holding Limited (NYSE:BABA)’s investments in artificial intelligence (AI) and innovation in e-commerce platforms position it well for future growth, enabling it to capitalize on emerging market trends.

With a forward P/E ratio of 10.49 and a market capitalization of $230.4 billion, Alibaba Group Holding Limited (NYSE:BABA) appears undervalued compared to its growth potential. Overall, the combination of its restructuring efforts, strong performance in core areas, and strategic investments makes Alibaba Group Holding Limited (NYSE:BABA) a promising candidate for long-term growth and value appreciation.