If you are wanting to build a strong investment portfolio, then having a few ASX 200 blue chip shares in there would be a smart move.
That's because these companies are typically industry leaders with strong competitive advantages, stable earnings, and a history of delivering solid returns to shareholders.
But which blue chips could be top picks for investors looking to make a purchase this week? Let's take a look at two that brokers rate highly. They are as follows:
The first ASX 200 blue chip share that could be a top buy according to analysts is James Hardie.
It manufactures and sells fibre cement, fibre gypsum and cement-bonded building products for interior and exterior building construction applications.
Bell Potter is bullish on the company. It believes that it is well-placed for growth in the coming years thanks to a structural shift towards fibre cement in the United States. It also feels that significant share price weakness following news of a major acquisition has created an attractive buying opportunity. The broker said:
In our view, JHX is poised for continued earnings expansion, driven by the structural shift towards fibre cement in the US. Households in the US continue to shift to fibre cement cladding from vinyl/timber, providing a multi-year runway for JHX's revenue and profit growth. With JHX announcing its intent to purchase AZEK, the share price has fallen from ~25%. While debate still wages around the deal, we retain JHX in our focus list as we see upside from these levels.
Bell Potter has a buy rating and $63.00 price target on its shares.
Over at Goldman Sachs, its analysts think that ResMed could be an ASX 200 blue chip share to buy.
It is the leading sleep disorder treatment company with a world class portfolio of devices and software to treat sleep apnoea and other conditions.
Goldman believes that ResMed's shares are undervalued at current levels and deserve to trade on higher multiples. It recently said:
Our Buy recommendation on RMD is premised on (1) Ongoing robust new patient growth for CPAP therapy despite the market entry of GLP-1 drugs to treat OSA, (2) Further RMD market share gains, building on its #1 global market position, (3) Expansion of the OSA market in regions outside of the US. We believe the stock's current trading multiple is unjustified based on its growth outlook.
Goldman has a conviction buy rating and $49.30 price target on its shares.
The post 2 super ASX 200 blue chip shares to buy now appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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