2 ASX 200 blue chip shares to buy

Woolworths Limited (ASX:WOW) and this ASX 200 blue chip share could be great options for investors this week. Here’s what you need to know…

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Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then I would suggest you check out the two listed below.

These quality companies could have the potential to grow at a solid rate over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s why:

REA Group Limited (ASX: REA)

REA Group could be a blue chip ASX 200 share to buy right now thanks to the improving housing market.

This property listings company has been a solid performer over the last few years despite battling tough trading conditions.

So with the housing market now improving, mortgage loan growth accelerating, and house prices rising, REA Group has the wind in its sails once again.

And thanks to cost cutting, new revenue streams, its market dominance, and potential price increases, the company’s earnings growth has been tipped to accelerate over the coming years.

Earlier this week analysts at Macquarie upgraded the company’s shares to an outperform rating with a $171.70 price target. It believes REA Group’s strong market position will allow it to lift prices and capture a greater share of marketing budgets.

Woolworths Limited (ASX: WOW)

Another blue chip ASX 200 share for investors to consider is retail giant Woolworths. It could be a good option right now due to the favourable outlooks for its key businesses. These include BIG W, BWS, Dan Murphy’s, and the jewel in the crown, Woolworths supermarkets.

Analysts at Macquarie are also fans of Woolworths. Following its solid half year update last month, the broker put an outperform rating and $44.50 price target on its shares.

It was pleased with Woolworths’ result and believes the company’s investment in its online businesses will continue to drive further growth. It also notes that the Endeavour Drinks business is expected to be demerged in June, which could unlock value for shareholders.  

Wondering where you should invest $1,000 right now?

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

*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended REA Group 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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