Top brokers have named these ASX blue chip shares as buys

Brokers believe that these could be the blue chips to buy right now…

| More on:
Young woman in yellow striped top with laptop raises arm in victory

Image source: Getty Images

Blue chip shares are leading companies that generally have strong business models, long track records, and products or services that dominate their respective markets.

It is because of these characteristics that they are considered to be quite stable and therefore lower risk options than the average share. For this reason, many investors will load up their portfolios with blue chip shares.

If you’re looking to do the same, then you might want to look at the two listed below. Here’s why they have been named as blue chips to buy:

Aristocrat Leisure Limited (ASX: ALL)

The first blue chip ASX share to consider is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a portfolio of world class poker machines and digital games.

It recently released its half year results, which revealed that Aristocrat has bounced back strongly from the pandemic. For the six months ended 31 March, the company reported a normalised net profit after tax (NPAT) of $362.2 million. This was an increase of 18.4% on the prior corresponding period.

Aristocrat’s profit growth was driven by strong performances from both its Gaming and Digital businesses. Positively, almost 80% of its revenue was derived from recurring sources during the period. This gives it a firm foundation to build on in the coming years.

This result went down well with analysts at Citi. In response, the broker retained its buy rating and lifted its price target to $46.00.

Healius Ltd (ASX: HLS)

Another blue chip share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers in Australia.

Like Aristocrat, Healius has been performing very strongly in FY 2021. During the first half, it reported a 16% increase in revenue to $953.5 million and a massive 190% jump in net profit to $75.6 million.

A key driver of this growth was its pathology business, which reported a 22% increase in revenue to $711.4 million and significantly wider margins. This was thanks largely to its role in testing for COVID-19.

Positively, this strong form has continued, with Healius recently reported solid growth during the third quarter. Once again, COVID-19 testing played a key role in this strong form.

One broker that is particularly bullish on Healius is Macquarie. This morning the broker retained its outperform rating and lifted its price target to $4.70.

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

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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 August 16th 2021

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News