2 outstanding ASX 50 shares named as buys

These blue chips could be in the buy zone…

If you're looking to bolster your investment portfolio with some high quality shares, then you might want to look at the ones listed below.

Here's why these ASX 50 shares have been tipped as ones to buy right now:

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Image source: Getty Images

Coles Group Ltd (ASX: COL)

The first ASX 50 share to look at is Coles. This supermarket giant could be a top option due to its strong market position and solid long term growth potential.

In respect to its market position, Coles now has over 800 supermarkets, over 900 liquor retail stores, and over 700 Coles express stores. From this sprawling network, the company processes the equivalent of 35 transactions every second.

The team at Morgans are positive on the company. The broker currently has an add rating and $19.80 price target on its shares. Morgans believes Coles' shares offer a lot more value for money than rival Woolworths Group Ltd (ASX: WOW).

Morgans said: "While vaccines are being rolled out across Australia, we think people will continue to spend more time at home due to the ongoing risk of COVID flare-ups with the working-from-home trend also likely to stay for some time (eg, Sydney and Melbourne remain in lockdown indefinitely). This will be beneficial for the major supermarket operators. We continue to see COL (~24x FY22F PE and ~3.5% yield) as offering better value than WOW (32x FY22F PE and 2.5% yield)."

Sonic Healthcare Limited (ASX: SHL)

Another ASX 50 share to consider is Sonic. It is one of the world's leading healthcare providers, with operations in Australasia, Europe and North America. Sonic employs more than 1,500 pathologists and radiologists, and more than 10,000 medical scientists, radiographers, sonographers, technicians, and nurses.

The company has been benefiting greatly from strong demand for COVID testing and Morgans expects this to continue for some time to come.

For this reason, the broker has an add rating and $45.98 price target on the company's shares.

It commented: "We see COVID-19 testing continuing into the foreseeable future, with growth potential in COVID serology testing. SHL's global base business is increasingly resilient, benefitting from geographical diversity. Strong B/S (gearing 21.6x; A$1.3bn headroom) opening the door to acquisitions, contracts and JVs."

Motley Fool contributor James Mickleboro has no position in any of the stocks 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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Sonic Healthcare Limited. 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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