With earnings season fast approaching, investors are bracing for a wave of results that could move share prices sharply.
For those looking to position themselves early, a handful of ASX blue chips stand out as potential winners thanks to their strong fundamentals and long-term growth drivers.
Here are three ASX 200 heavyweights worth considering before the numbers start rolling in.
CSL Ltd (ASX: CSL)
Global biotech giant CSL could be a great blue chip to buy now. Especially with its shares trading on lower than normal multiples.
Bell Potter recently noted that its shares trade on roughly 22 times forward earnings, which is well below its historical average of around 31. This could make it an attractive entry point for long-term investors.
Particularly given that the market believes that CSL is well-positioned to deliver double-digit earnings per share growth each year for the foreseeable future.
Bell Potter currently has a buy rating and $305.00 price target on its shares.
REA Group Ltd (ASX: REA)
Another blue chip ASX share that could be a top buy is REA Group. It is the operator of the dominant realestate.com.au platform.
REA Group's digital platform dominance allows it to capture advertising revenue even as listings ebb and flow, and its growing suite of adjacent services — such as mortgages and data — helps diversify earnings.
With property listings expected to pick up as interest rates fall, REA Group could see a lift in both volumes and revenue in the near term. The company's high-margin, capital-light business model also means any revenue growth tends to translate into strong earnings leverage, making it a stock to watch ahead of results.
Morgan Stanley is a fan of the company and has an overweight rating and $280.00 price target on its shares.
ResMed Inc. (ASX: RMD)
A final ASX blue chip share to buy could be sleep disorder treatment company ResMed.
It has been on form this year, delivering solid revenue and earnings growth thanks to increasing demand for its masks and software. And with a market opportunity estimated at over 1 billion people, it still has bucketloads of growth ahead of it.
So, with the stock still trading below its historical average multiples, investors may find value heading into another reporting period.
Macquarie thinks it would be a good pick for investors. Its analysts recently put an outperform rating and $48.00 price target on its shares.
