2 quality ASX blue chip shares

Here are two blue chip shares that have been rated as buys recently…

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Given the large number of blue chip shares out there for investors to choose from, it can be hard to decide which ones to buy.

In order to narrow things down for you, I have picked out two blue chip shares which come highly rated right now. They are as follows:

REA Group Limited (ASX: REA)

The first blue chip ASX share to look at is REA Group. It is the dominant real estate listings company in the Australian market and also has a number of growing international businesses.

In respect to the former, REA Group is the clear leader in the ANZ market with its realestate.com.au website. For example, during the third quarter of FY 2021, it set new audience records and delivered over 3 million buyer enquiries per month. This was an increase of 82% for the quarter.

Underpinning this were 12.5 million unique visits each month on average and 130.7 million average monthly total visits. This is 3.2 times more visits than the nearest competitor, which demonstrates just how big a lead it has over the competition.

This is a big positive, especially given the very positive industry trading conditions. Combined with new revenue streams, acquisitions, price increases, and cost reductions, this bodes well for its earnings growth in the coming years.

Macquarie is very positive on the company. Last month the broker retained its outperform rating and lifted its price target to $179.10.

ResMed Inc. (ASX: RMD)

Another blue chip for investors to look at is ResMed. It is one of the world’s leading medical device companies with a focus on sleep disorders.

ResMed has a portfolio of devices and software designed to help people sleep better. These products are widely regarded as the best in their class, putting ResMed in a great position to benefit from the growing prevalence of sleep disorders. And given the increasing education around how important sleep is, it’s no surprise to learn that demand for treatments continues to grow.

In addition to this, the company is well placed to benefit from the shift to home healthcare. This is thanks to its comprehensive out-of-hospital software platforms that allow people to stay healthy in the home or care setting of their choice.

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

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended REA Group 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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