Stock prices go up and down in the short term, but the market will reward growth and strong financials over the long run. You'll do well buying stocks of quality businesses at fair prices, but you can do better if you buy quality companies when they're undervalued.

Buying undervalued blue chip stocks simplifies investing quite a bit -- buy and hold, letting the business grow your money for you. An undervalued stock regaining investor sentiment can supercharge your returns.

Ready to get started? Here are three undervalued winners you can buy today and hold for years to come.

1. Amazon

E-commerce and cloud computing giant Amazon (AMZN -0.29%) has been such a successful long-term investment that it's almost surprising to see the market let the stock become as cheap as it has. Worries over consumers tightening their wallets and a slowdown in how much companies are spending on AWS have worked against the share price.

Valuing Amazon is tricky because the company reinvests so much of its cash back into the business that it doesn't look like Amazon is making much profit. However, it just invested tens of billions of dollars in upgrading its logistics and is planning future cloud investments in India. The company's Prime subscriber base is more than 200 million members worldwide; look for Amazon to continue finding ways to monetize its Prime members.

AMZN EPS LT Growth Estimates Chart.

AMZN EPS LT Growth Estimates data by YCharts.

Amazon's stock is a ways off its 52-week low, but shares are still on the bargain rack. If you look at the company's valuation through operating cash flow, Amazon is nearly its cheapest in over a decade. As some of these expensive investments tail off, the stock should look cheaper as earnings bounce back. Analysts believe Amazon's bottom line will grow by more than 36% annually -- not bad when the stock is so cheap!

2. Lowe's

Home improvement has been a core spending category for consumers for generations. Lowe's (LOW 1.88%) is America's second-largest home improvement retailer, and it sells appliances, tools, materials, and lumber to professional contractors and do-it-yourself homeowners. Housing is a staple of American culture, and that emotional attachment to home continually gets people to open their wallets.

Lowe's has been steadily growing in size for decades, rewarding patient shareholders with a growing dividend along the way. The company is a Dividend King, with 61 consecutive annual increases. The dividend payout ratio is still just 35%, so investors can feel good about expecting years of future increases too.

LOW P/E Ratio (Forward) Chart.

LOW P/E Ratio (Forward) data by YCharts.

Consumer spending is cooling; not only has inflation made core living expenses rise, but the economy has come down from the pandemic stimulus money that stimulated consumer activity for several years. As a result, analyst expectations for growth have faded some. However, Lowe's has arguably been punished too much. The stock trades at a forward price-to-earnings (P/E) ratio of just 15 despite expected double-digit earnings growth. It's hard to turn away a Dividend King on sale.

3. British American Tobacco

Tobacco is a controversial topic that some may avoid for personal reasons. But if you're willing to own tobacco stocks, British American Tobacco (BTI 1.18%) is a table-pounding buy worth considering. The global tobacco products company sells cigarettes, chewing tobacco, electronic cigarettes, heated tobacco devices, and oral nicotine pouches.

Investors get compensated well for owning shares. Tobacco companies have traditionally generated tons of cash flow, which ends up in shareholder pockets as dividends. British American Tobacco is no exception; the company regularly raises the payout, though U.S. investors may see it fluctuate based on currency exchange. The stock offers investors a juicy 8.3% starting dividend yield at today's share price.

BTI P/E Ratio (Forward) Chart.

BTI P/E Ratio (Forward) data by YCharts.

Tobacco companies like British American Tobacco are transitioning into what tobacco companies call new reduced-risk products. British American Tobacco's diverse global footprint, particularly in vaping, should continue supporting earnings growth.

Analysts believe the company's earnings per share will grow by nearly 12% annually over the coming years. Yet, the stock trades at a P/E ratio of less than 8. As such, British American Tobacco's potential earnings growth and high starting yield should interest value and dividend investors alike.