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3 blue chip ASX growth shares to buy

growth ASX shares, small caps

Earlier today I looked at a few blue chip shares that offer generous dividend yields. You can read about those here.

Now, I thought I would turn my attention to blue chip shares which have strong growth potential. With that in mind, here are three blue chip growth shares to look at:

CSL Limited (ASX: CSL)

CSL is a leading biotechnology company which is home to the CSL Behring business and the Seqirus business. Combined, these two businesses have a portfolio of life-saving and lucrative therapies and vaccines which are generating billions of dollars in sales each year. From this, the company invests in the region of 10% to 11% of its sales back into research and development activities every year. This means it is on course to invest around US$1 billion into these activities this year.

Analysts at UBS are big fans of the company and note that its research and development pipeline is rich with potentially lucrative products that could drive strong growth in the future. The broker has a buy rating and $346.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another blue chip growth share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. Thanks to its industry-leading products, wide distribution, and successful acquisitions, ResMed has been growing at a very strong rate over the last few years. Pleasingly, thanks to its significant market opportunity and the growing prevalence of sleep disorders, it has been tipped to continue doing so for the foreseeable future.

Credit Suisse believes the company is well-placed for strong earnings growth over the medium term and has a buy rating and $31.00 price target on its shares.

SEEK Limited (ASX: SEK)

A final blue chip growth share to look at is SEEK. It is the dominant force in job listings in the ANZ market and has a number of international operations. This includes its Zhaopin business, which is one of the leaders in the massive China market. While FY 2020 was a difficult year because of the pandemic, SEEK is bouncing back strongly now the worst is over and hiring is ramping up.

Credit Suisse is also a fan of SEEK and has been impressed with its recovery from the pandemic. The broker has an outperform rating and $28.50 price target on its shares.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended ResMed Inc. and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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