The S&P/ASX 200 Index (ASX: XJO) hit a record high yesterday, surpassing the previously untouched 8,800-point threshold.
The index is now up more than 14% over the last year.
For investors who have exposure to this index through an ETF or through a combination of blue-chip shares, many might be considering if it's time to take profits.
What are the largest ASX shares?
The three largest ASX companies by market capitalisation are:
Over the last 12 months, these three dominant companies have performed very differently.
CBA has contributed to the overall rise of the ASX 200, climbing roughly 40% in that span.
However, BHP shares have fallen approximately 3% over the last year, while CSL shares have fallen more than 10%.
This has created an interesting opportunity in the market, where two of the largest companies on the ASX have missed out on this strong run and could remain undervalued despite the ASX 200 hitting a record high.
Buy, sell or hold?
Pundits have been ringing alarm bells over CBA shares for some time now, with many brokers listing the bank as a sell.
Macquarie has a $105.00 price target on its shares, which indicates a significant drop of more than 40%.
Bell Potter projects a similar drop for CBA shares. The broker has a "sell" recommendation and price target of $118.42.
It's a different story for CSL shares. Bell Potter has a "buy" recommendation and $314.39 price target on the biotechnology company.
UBS currently has a price target of $310 on CSL shares.
These two targets indicate an upside between 15-17%.
Finally, Australia's largest materials company – BHP – also has upside according to brokers.
Its share price has risen more than 3% over the last month, rebounding after a volatile period.
Bell Potter currently has an "overweight" recommendation and $43.45 price target on BHP shares.
Morgan Stanley also has an overweight rating. The broker has a $44.00 price target on its shares.
These targets indicate a modest upside of 8-10%.
Foolish takeaway
It's an important reminder that even with the ASX 200 hitting a new all-time high, there remains value options amongst blue-chip stocks.
It seems likely that investors continue to move away from bank shares and into mining and healthcare stocks like we saw through July.
