We recently released a list 10 cheap blue chip stocks purchased by hedge funds. In this article, we will explore the position of Alphabet Inc. (NASDAQ:GOOGL) with other cheap blue chip stocks representing stocks according to hedge funds.
Fidel said that as U.S. policy uncertainty grows, based on broad market anxiety increases. Financial markets have lowered trade-offs through tariffs, deregulation and stricter immigration policies. Now, the global business cycle is out of sync. According to investment management firms, the U.S. appears to have shown dynamics in the mid- and late cycles in the first quarter. In addition, diversification between fixed income and non-U.S. assets is crucial in growth risks. Fidel said the dollar decline pushed non-U.S. stocks despite gold and commodities gained.
According to Fidelity’s loyalty, uncertainty about the direction of U.S. policy affected financial markets in the first quarter, with investors digesting news related to enforcement behaviors such as increased tariffs, deregulation announcements, reduced government staffing and planning, and stricter immigration activities. Likewise, concerns related to the economic impact of tariffs on the global economy have increased in the days after the quarterly closure. Despite the increased growth risk, global expansion was intact by the end of the first quarter. Fidelity believes that diversification of fixed income and non-U.S. assets is crucial.
According to investment managers, the S&P 500 returned -4.3% in Q1 2025, partly due to growth in stock performance (-10%). On the other hand, gold (+19%) and commodities (+8.9%) achieved strong returns due to high market uncertainty.
Also read: 7 Best Stocks to Buy Long-Term and 8 Cheap Jim Cramer Stock Investing.
According to Fidelity, consumer inflation remained at about 3% during the first quarter, well above the Fed's 2% target. The company expects sticky inflation to be around 3% next year, with its increased tariffs leading to rising risks. According to the company, consumer inflation expectations have risen to a decade-long high, making it easier for businesses to get through increased costs. Fidel said it has remained nervous so far despite increased policy uncertainty, government layoffs and cuts in federal funds. On the supply side, widespread participation in labor force participation has dropped pre-epidemic rates due to slowing immigration and population restrictions.
According to Marci McGregor, Portfolio Strategy (Chief Investment Office), Merrill Lynch and the head of Bank of America’s Private Banking, the next few months may be a good time to play defensively. Investors can consider defensiveness, dividend payments and value stocks. In the long run, investors can position themselves as when trade uncertainty is reduced. McGregor said volatility can provide opportunities for buying assets that support long-term strategies at attractive prices.
To list 10 cheap blue chip stocks purchased based on hedge funds, we scanned the holdings of the Ishares Core Core S&P 500 ETF and selected companies that traded at a forward price-to-earnings ratio of up to about 20.0 times. We also mentioned hedge fund sentiment around each stock as of the 4th quarter ended in the fourth quarter. Finally, stocks are arranged in the rising order of their hedge fund sentiment.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Does Alphabet Inc. (GOOGL) stock cheap blue chips purchased based on hedge funds?
The user's hand enters a search query into the Google search box and emphasizes the company's search function.
Number of hedge fund holders: 234
As of April 18, p/e: ~17.04x
BOFA Securities maintains a “buy” rating on Alphabet Inc. (NASDAQ:GOOGL). Analysts are positive about Google's recent AI overview and its core valuations. They believe that the new features are expected to increase monetization and more ad clicks from information queries. Alphabet Inc. (NASDAQ:GOOGL)’s core search business has been demonstrating resilience and growth. Despite concerns related to AI disruptions, the company's traditional search business is robust. The company's AI plan exceeds its cloud services. The integration of AI in the entire company’s product suite demonstrates its commitment to maintaining the competitive advantage of AI technology.
The future growth of Alphabet Inc. (NASDAQ:GOOGL) remains related to AI initiatives and AI integration. Its AI infrastructure investment and research have well gained the benefits of increasing demand for AI-driven services and cloud computing. Advances in AI can fuel Alphabet Inc. (NASDAQ:GOOGL)’s search algorithm, which can help maintain advantages in the search market and increase advertising revenue with more precise positioning and improved user experience. Additionally, GCP’s emphasis on AI and ML capabilities can lead to enterprises planning to implement advanced AI solutions, which will help boost market share growth in the wider cloud sector. As Alphabet Inc. (NASDAQ:GOOGL) has been advancing its AI technology, GCP can benefit from early access to cutting-edge AI capabilities.
Overall, GOOGL Ranked first According to the hedge fund's inventory list of cheap blue chip stocks. Although we acknowledge the potential of GOOGL as an investment, our belief lies in the belief that certain undervalued AI stocks have greater hope to offer higher returns and do so in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for an undervalued AI stock that is more promising than GOOGL but has traded less than 5 times the price of its earnings, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.
