While investors may be avoiding many blue chip shares such as Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS) right now due to their subdued growth outlook, not all blue chip companies are struggling for growth.
The three blue chip shares listed below continue to perform strongly. Are these among the best options on the market?
CSL Limited (ASX: CSL)
In my opinion CSL is the best blue chip share on the Australian share market. I think its strong core business, growing plasma collection network, and fledgling influenza business have positioned it well to deliver solid earnings growth over the long-term. I feel this positive long-term growth outlook and the overall quality of the biopharmaceutical company's operations go some way to justifying its shares trading at a premium to the market average.
REA Group Limited (ASX: REA)
Although the housing market is weakening and rival Domain Holdings Australia Ltd (ASX: DHG) released a disappointing trading update last week, I still expect REA Group to continue its solid growth over the coming years thanks to its depth penetration, international exposure, strong pricing power, and the launch of new products. This could make it worth considering a long-term investment in the property listings company after its recent share price pullback.
ResMed Inc. (ASX: RMD)
I think that this sleep treatment company is another top blue chip option. It has been growing both its top and bottom line at a solid rate for the last few years thanks to its leading position in a market that has been growing significantly. The good news is that the sleep treatment market is expected to continue its growth over the next decade, putting ResMed in a good position to continue its strong form for many years to come.
