Revealed: The top 10 performing blue-chip shares of 2017

These shares have significantly outperformed the market in 2017 but is there any value left?

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has now managed to post an increase of nearly 3.7% for the year-to-date (excluding dividends), largely on the back of the gains of the last two days.

Interestingly, a number of blue-chip shares have performed exceptionally well since the start of the year, with the top 10 performers highlighted below:

Company P/E Ratio Dividend Yield Price-to-book Ratio Year-to-date Gain 5-Yr Total Return (p.a)
BlueScope Steel Limited (ASX: BSL)
12.9 1.1% 1.52 25.6% 39.14%
CSL Limited (ASX: CSL)
34.3 1.4% 16.4 20.2% 30.4%
Qantas Airways Limited (ASX: QAN)
7.6 2.6% 2.34 16.5% 19.8%
AGL Energy Ltd (ASX: AGL)
25.1 3.0% 2.21 13.9% 18.2%
Aristocrat Leisure Limited (ASX: ALL)
28.1 1.6% 10.6 11.6% 46.1%
Treasury Wine Estates Ltd (ASX: TWE)
32.9 1.9% 2.47 10.0% 27.9%
Transurban Group (ASX: TCL)
86.9 4.1% 4.74 9.9% 21.8%
Computershare Limited (ASX: CPU)
21.5 2.4% 5.24 9.7% 12.6%
Sydney Airport Holdings Ltd (ASX: SYD)
43.8 4.8% 13.9 9.0% 25.3%
Cochlear Limited (ASX: COH)
36.9 1.8% 17.4 7.9% 20.7%

Overall, that is a pretty high quality list of companies that have also all performed remarkably well over a five-year time frame. Perhaps the biggest surprise is the five-year returns delivered by Qantas and BlueScope Steel, although these returns do fall away over a longer time period.

However, despite their strong returns, I think the majority of investors would agree that most of the shares above appear fully valued.

Understandably, shares like CSL, Transurban and Cochlear will always demand a premium valuation due to their attractive fundamentals and impressive track records. Nonetheless, it is still important that investors purchase the shares at reasonable price – even for the highest quality companies.

With that in mind, the three companies I would most like to own from the list above would have to be:

  1. CSL – The biopharmaceutical company is a global leader and commands an impressive market position. It has an exciting pipeline of new products that will be launched soon and this should drive earnings growth higher once again. I would be a happy buyer if the shares traded back towards $100 per share.
  2. Sydney Airport – The tourism boom continues to roll on and Sydney Airport is a key beneficiary. The uncertainty of the second Western Sydney airport is playing on the minds of investors and this is a risk for the company. Nonetheless, I like the its defensive qualities and would be an interested buyer towards the $5.50 level.
  3. Aristocrat Leisure – The gaming company is a proven performer and continues to win market share away from its competitors. Impressively, Aristocrat recently upgraded its full-year earnings expectations thanks to a stronger-than-expected start to the year. Although the company is experiencing exceptionally strong earnings growth, the shares still look fully valued and I would look to be a buyer below the $15 per share level.
Motley Fool contributor Christopher Georges has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »