2 brilliant blue chip ASX 200 shares to buy

ResMed Inc. (ASX:RMD) and this ASX 200 blue chip share could be in the buy zone right now. Here’s why brokers rate them highly…

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If you’re wanting to construct a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.

But which blue chip ASX 200 shares should you buy? Two that could be in the buy zone are listed below:

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care could be a blue chip to buy. It is a leading private healthcare company that provides services via a network of facilities across 10 countries. At the last count, the company was recording over eight million admissions/patient visits per annum to its facilities in over 500 locations.

Trading conditions have been hard for Ramsay over the last 12 months because of the pandemic’s impact on surgeries. However, with its Australian operations operating largely as normal now, this segment looks set to benefit greatly from a backlog in procedures. And given how this side of the business generates around two-thirds of its earnings, this is a very positive thing.

Looking ahead, its international operations shouldn’t be far behind now vaccines are being rolled out. After which, Ramsay looks well-placed to continue its growth over the long term thanks to numerous tailwinds such as ageing populations.

Macquarie currently has an outperform rating and $75.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another blue chip to look at is this medical device company. Unlike Ramsay, ResMed has been able to continue its strong form in FY 2020 and FY 2021 despite the pandemic.

In respect to the latter, during the second quarter ResMed posted a 9% increase in quarterly revenue to US$800 million and a 17% increase in net profit to US$206.4 million. This was driven by strong demand for respirators and its sleep treatment portfolio.

Positively, due to the enormous sleep disorder market, ResMed has a significant runway for growth over the next decade. Another positive is its digital health ecosystem, which looks well-placed to benefit from the shift to home healthcare. At the end of December, its ecosystem reached over 12 million cloud connectable medical devices.

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

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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.

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