2 fantastic blue chip ASX shares that could be strong buys

REA Group Limited (ASX:REA) and this blue chip ASX share could be strong buys right now. Here’s what you need to know…
The post 2 fantastic blue chip ASX shares that could be strong buys appeared first on The Motley Fool Australia. –

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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)

REA Group is the leading player in real estate listings in the Australian market by some distance. At the last count, its website was commanding over triple the visits of its nearest rival. This puts the company in a great position to benefit from a housing market that is booming once again.

Especially given the way the company has performed during the downturn. For example, during the first half of FY 2021, REA Group overcame a decline in listings to record solid profit growth.

For the six months ended 31 December, the company reported a 2% decline in revenue to $430.4 million. But following a 13% reduction in its operating expenses to $145.8 million, it delivered a 9% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $290.2 million.

In addition to this, new revenue streams, price increases, and its international operations look set to support its growth over the coming years as well. 

Morgan Stanley is positive on the company. It currently has an overweight rating and $175.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another blue chip to look at is ResMed. It is one of the world’s leading sleep treatment-focused medical device companies.

Over the last decade, ResMed has been growing its revenue and earnings at a very strong rate. This has been underpinned by its industry-leading products, growing software business, the increasing awareness of sleep disorders, and its investment in R&D.

The good news is that the company’s growth doesn’t look likely to end any time soon. This is thanks to its huge addressable market and the shift to home healthcare. The latter is being supported by its comprehensive out-of-hospital software platforms that allow people to stay healthy in the home or care setting of their choice.

One broker that is positive on ResMed is Morgans. It currently has an add rating and $30.09 price target on its shares.

Where to invest $1,000 right now

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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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*Returns as of February 15th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

The post 2 fantastic blue chip ASX shares that could be strong buys appeared first on The Motley Fool Australia.

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