Five ASX blue chips, five verdicts. One of them I wouldn't touch right now

I've taken a closer look at five familiar ASX shares, and there's one I wouldn't be comfortable buying at current prices.

Big companies can be comforting investments. They have familiar names, established customers, and a history of rewarding shareholders.

But I don't think being an ASX blue chip automatically makes a share a good buy.

Some are finding new ways to grow, while others face problems that could weigh on returns for years. The price investors pay also makes a difference.

I've looked at five popular ASX shares to decide which I'd buy today and which one I'd avoid altogether.

Let's start with a mining giant that's investing heavily in its future.

Two work colleagues looking at a laptop and discussing something.

Image source: Getty Images

BHP Group Ltd (ASX: BHP)

BHP has long been associated with iron ore, and its Western Australian operations remain a major source of earnings and cash flow.

But I think the next stage of its growth will be shaped by the investments it has been making elsewhere.

Its copper operations provide exposure to expanding electricity networks and data centre infrastructure. Copper production was lower in the September quarter, but stronger prices helped offset some of that weakness. BHP also maintained its full-year production guidance, despite the mixed quarter.

Meanwhile, the Jansen potash project in Canada is approaching its first production, expected in mid-2027. This adds another commodity supported by the need to improve agricultural productivity.

At around $58.04, BHP trades on a P/E ratio of roughly 17.5 times forecast FY27 earnings. Analysts expect earnings per share (EPS) to rise to $4.06 by FY29, bringing that multiple down to around 14 times.

Commodity prices will influence the outcome, but established cash generation and projects nearing production make BHP a buy for me.

And that's my first verdict. What about the other four?

One is Australia's biggest bank. Another is showing signs of recovery, while a popular retailer keeps building on its strengths.

The final company is the one I wouldn't buy today. Here's my view on them all.

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Walt Disney and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Walt Disney, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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