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2 of the best blue chip ASX shares to buy

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If you’re wanting to add a few blue chip shares to your portfolio, then you may want to check out the ones listed below.

Here’s why these ASX shares come highly rated:

Goodman Group (ASX: GMG)

Goodman Group is one of the world’s leading integrated commercial and industrial property companies. It owns, develops, and manages industrial real estate globally. This includes warehouses, large scale logistics facilities, and business and office parks across a total of 17 countries. 

At the last count, Goodman had $51.7 billion of total assets under management globally, 369 properties under management, and 1,600+ customers. Among the latter are the likes of Amazon, DHL, Showpo, and Walmart.

Goodman focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally, where demand is strong and transformational changes are driving significant opportunities. This strategy has worked incredibly well and led to Goodman delivering consistently strong growth in earnings and distributions.

One broker that is confident this positive form will continue is Morgan Stanley. It was pleased with its first quarter update and believes the company’s focus on strong locations is paying off. The broker has an overweight rating and $20.90 price target on its shares.

ResMed Inc. (ASX: RMD)

ResMed is a medical device company aiming to change lives by developing, manufacturing and distributing innovative medical devices and cloud-based software solutions that better diagnose, treat, and manage sleep-disordered breathing, chronic obstructive pulmonary disease (COPD), and other key chronic diseases.

Demand has been strong for its innovative products in recent years, leading to stellar sales and earnings growth. This certainly was the case in FY 2020 when it delivered a 15% increase in revenue to US$2,957 million and a 32% jump in net income to US$692.8 million.

The good news is that ResMed has started FY 2021 strongly and appears well-placed to continue this positive form in the future. This is thanks to its world-class products, the massive number of undiagnosed sleep apnoea sufferers globally, and its rapidly growing digital health ecosystem.

In respect to the latter, the company’s digital health ecosystem reached over 12 million cloud connectable medical devices in 2020. This provides ResMed with strong recurring revenues and a material amount of high quality data.

Credit Suisse is positive on the company and has an outperform rating and $31.00 price target on its shares. Though, it is worth noting that the company’s second quarter update will be released on Friday. So investors may want to consider waiting for that before jumping in.

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

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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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