2 fantastic blue chip ASX shares that could be strong buys

REA Group Limited (ASX:REA) and this blue chip ASX share could be strong buys right now. Here's what you need to know…

| More on:

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

Given the large number of blue chip shares out there for investors to choose from, it can be hard to decide which ones to buy.

In order to narrow things down for you, I have picked out two blue chip shares which come highly rated right now. They are as follows:

REA Group Limited (ASX: REA)

REA Group is the leading player in real estate listings in the Australian market by some distance. At the last count, its website was commanding over triple the visits of its nearest rival. This puts the company in a great position to benefit from a housing market that is booming once again.

Especially given the way the company has performed during the downturn. For example, during the first half of FY 2021, REA Group overcame a decline in listings to record solid profit growth.

For the six months ended 31 December, the company reported a 2% decline in revenue to $430.4 million. But following a 13% reduction in its operating expenses to $145.8 million, it delivered a 9% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $290.2 million.

In addition to this, new revenue streams, price increases, and its international operations look set to support its growth over the coming years as well. 

Morgan Stanley is positive on the company. It currently has an overweight rating and $175.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another blue chip to look at is ResMed. It is one of the world's leading sleep treatment-focused medical device companies.

Over the last decade, ResMed has been growing its revenue and earnings at a very strong rate. This has been underpinned by its industry-leading products, growing software business, the increasing awareness of sleep disorders, and its investment in R&D.

The good news is that the company's growth doesn't look likely to end any time soon. This is thanks to its huge addressable market and the shift to home healthcare. The latter is being supported by its comprehensive out-of-hospital software platforms that allow people to stay healthy in the home or care setting of their choice.

One broker that is positive on ResMed is Morgans. It currently has an add rating and $30.09 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Blue Chip Shares

Person holding a blue chip.
Blue Chip Shares

2 ASX blue-chip shares I'd buy with $3,000 right now

These are large businesses with compelling futures.

Read more »

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.
Blue Chip Shares

Why this could be one of the best blue chip ASX shares to buy right now

Morgans sees this blue chip as a best idea for investors right now.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Blue Chip Shares

Buy these ASX 200 blue chip shares for big returns

Analysts think these blue chips could be in the buy zone according to analysts.

Read more »

A couple are happy sitting on their yacht.
Opinions

Top ASX shares to buy instead of a term deposit in March 2024

You may have to weather the odd storm, but the long-term investment outlook looks fine!

Read more »

Happy woman looking for groceries. as she watches the Coles share price and Woolworths share price on her phone
Blue Chip Shares

Why Coles shares could be a best buy for blue chip investors

Bell Potter thinks Coles is the best supermarket to buy this month.

Read more »

Three excited business people cheer around a laptop in the office
Blue Chip Shares

2 powerful blue chip ASX 200 shares to buy for your portfolio

Analysts think these high-quality companies could give your portfolio a big boost.

Read more »

A little boy holds his fingers to his head posing as a bull.
Blue Chip Shares

Here are 2 high-quality ASX 200 blue chip shares that analysts are bullish on

These blue chips have been given a big thumbs up.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Blue Chip Shares

This is the ASX blue-chip share I'd buy for dividend income

Here’s why I love this stock for payouts.

Read more »