With the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) hovering near a six-year high, quality blue chip stocks trading at reasonable prices are becoming more and more difficult to come by. Look no further than market favourites such as Westpac Banking Corp (ASX: WBC) or Woolworths Limited (ASX: WOW), which have both soared to fresh all-time highs recently.
Although reasonably priced blue chips might not be as easy to identify at this stage of the market's cycle, they are still out there to be found. For instance, consider these three market darling.
Coca-Cola Amatil Ltd (ASX: CCL) is trading near a five-year low after a disastrous run in 2013. Since hitting a high of $15.18 in May last year, the stock has dropped nearly 40% as its profits have taken a huge hit. This is the opportunity of a lifetime for investors. Warren Buffett once described the Coca-Cola brand as a "forever brand" and while the problems facing the business appear to be short-term in nature, you'll want to be holding the shares when they make their recovery.
ResMed Inc. (CHESS) (ASX: RMD) is another stock well worthy of your investment dollars. The company has an incredible track record, having grown its revenue in every single quarter since listing in 1995 (you can't beat that for consistency). While the company will benefit from a falling Australian dollar as well as increasing occurrences of various sleep disorders amongst the global population, now is the time to buy.
BHP Billiton Limited (ASX: BHP) is perhaps the most controversial blue chip to have made this list. The miner is facing significant headwinds, such as declining iron ore and coal prices, but could certainly deliver fantastic returns in the long-run. The stock is still well down from its 2011 highs, but could soon make a climb as the miner focuses on reducing costs, increasing productivity and simplifying its balance sheet (for instance, selling its nickel assets).
An even better bet than these blue chips
Although they remain attractive investment prospects today, Coca-Cola Amatil, ResMed and BHP are all well-established companies with most of their growth behind them. However, there is another company early in its growth days which might just double your money over the coming years…