If you want to build a balanced portfolio, having a few blue chip ASX shares would be a smart move.
But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down for you, I have picked out two ASX blue chip shares that are highly rated:
Goodman Group (ASX: GMG)
Goodman Group is a leading integrated commercial and industrial property company with operations across the world. Among its portfolio are warehouses, large scale logistics facilities, and business and office parks.
At the last count, Goodman had $51.8 billion of total assets under management globally, 369 properties under management, and over 1,600 customers. Among the latter are the likes of Amazon, Coles Group Ltd (ASX: COL), DHL, Showpo, and Walmart.
Pleasingly, it has been growing at a strong rate over the last decade and even during the pandemic. This is thanks to its focus on investing in and developing high quality industrial properties in strategic locations.
It chooses locations that are close to large urban populations and in and around major gateway cities globally. This is where demand is strong and transformational changes are driving significant opportunities. This strategy has been delivering consistently strong returns, much to delight of shareholders.
Morgan Stanley appears confident the positive form can continue. It has an overweight rating and $20.90 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
A second blue chip ASX share to look at is Telstra. It could be a blue chip to buy thanks to its attractive valuation and the positive progress it is making with its T22 strategy.
Telstra’s T22 strategy is creating a much leaner business and one which is expected to return to growth in the not so distant future. In fact, the company’s CEO, Andy Penn, is targeting mid to high single digit operating earnings growth next year.
In February he commented: “I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience. To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused.”
Another positive is that Telstra is looking to unlock value by monetising assets and splitting into three separate entities.
Ord Minnett is a fan of the plan and believes the Telstra share price is in the buy zone. It currently has a buy rating and $4.05 price target on its shares.
Where to invest $1,000 right now
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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 owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.