2 fantastic blue chip ASX 200 shares rated as buys

Woolworths Limited (ASX:WOW) 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 are highly rated are listed below:

ResMed Inc. (ASX: RMD)

The first blue chip ASX 200 share to look at is ResMed. It is one of the world’s leading medical device companies with a focus on sleep disorders.

ResMed appears well-placed for growth over the long term thanks to its enormous addressable market, its industry-leading technology, and its digital health ecosystem. At the end of December, this ecosystem reached over 12 million cloud connectable medical devices.

Positively, its investment in digital health also gives it an advantage over much of the competition and puts it in a strong position to benefit from the shift to home healthcare.

Morgans is positive on the company. Earlier this week the broker put an add rating and $29.14 price target on its shares.

Woolworths Limited (ASX: WOW)

Another blue chip ASX 200 share to consider is retail conglomerate Woolworths.

Woolworths has been a very positive performer in FY 2021 thanks to strong performances across its BIG W, BWS, Dan Murphy’s, and Woolworths supermarkets businesses.

This led to the company reporting a 10.5% increase in first half revenue to $35.8 billion and a 15.9% increase in net profit after tax to $1,135 million.

And although its growth is now slowing as it cycles the panic buying at the height of the pandemic, Woolworths looks well-placed to resume its solid growth once trading conditions normalise. This is thanks to its strong market position, online growth, and the unlocking of value via the Endeavour demerger.

Macquarie is a fan of the company. Last late month, the broker put an outperform rating and $44.50 price target on its shares.

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*Returns as of May 24th 2021

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 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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