ResMed Inc. (ASX:RMD) and this ASX blue chip share could be quality options for investors in 2021. Here’s why they come highly rated…
The post Buy these ASX blue chip shares in 2021 appeared first on The Motley Fool Australia. –
If you’re a fan of blue chip shares, then you’re in luck. Right now, there are a number of blue chips on the Australian share market with very positive outlooks.
Two that have been rated as buys are listed below:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The first blue chip share to look at is Domino’s. This pizza chain operator is targeting strong growth over the long term through the expansion of its store network across the Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark markets.
At the end of FY 2020, the pizza chain operator had a network of 2,668 stores across these countries. This might sound like a lot of pizza restaurants, but management believes there is still significant room for more in the markets it currently operates in. By 2033, the company is aiming to more than double the size of its network to 5,500 stores. And that doesn’t include any potential expansions into new territories.
In addition to this, Domino’s has set itself a medium term target of growing its same store sales by 3% to 6% per annum. If it delivers on both these targets, then the combination of organic and inorganic growth should result in strong top line growth.
Goldman Sachs believes Domino’s can growth its earnings at a strong rate in the coming years. So much so, its analysts have put a conviction buy rating and $88.00 price target on its shares.
ResMed Inc. (ASX: RMD)
Another blue chip share to look at is ResMed. Like Domino’s, it has been growing at a strong rate over the last decade. So much so, it has now become one of the world’s leading sleep treatment companies.
The good news is that ResMed has started FY 2021 strongly and appears well-placed to deliver further impressive growth this year. During the first quarter, the company reported a 10% increase in revenue to US$751.9 million and a 37% jump in profit to US$185.4 million. ResMed has been benefiting from strong demand for ventilators and also its core sleep treatment products.
Another positive this year has been the rapid growth of its digital health ecosystem. At the end of FY 2020, this ecosystem reached over 12 million cloud connectable medical devices. This provides ResMed with strong recurring revenues and a material amount of high quality data.
Last month, analysts at Morgans put an add rating and $30.99 price target on the company’s shares.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
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.
*Returns as of June 30th
- 2 stellar ASX growth shares to buy in January
- Invest like Warren Buffett and buy and hold these ASX shares in 2021
- 3 of the best ASX shares to buy right now
- 7 top ASX biomedical shares in 2020
- 2 blue chip ASX shares to buy for 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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.