If you're looking to fill up your portfolio with some of Australia's largest blue chip stocks, chances are ResMed Inc. (CHESS) (ASX: RMD), Wesfarmers Ltd (ASX: WES) and Rio Tinto Limited (ASX: RIO) have caught your attention once or twice.
ResMed Inc.
ResMed is a world-leading provider of masks and flow generators for sufferers of sleep apnoea, and related respiratory disorders. It currently sells its devices to individuals in 100 countries either directly or through distributors. Sleep apnoea is a growing problem and the effects of it (aside from a rude awakening in the middle of the night) are slowly becoming more apparent. ResMed believes 34% of males and 17% of women are affected by Sleep-Disordered Breathing.
Following a recent share price plunge, ResMed is now back in the buy zone for long-term investors.
Wesfarmers
As Australia's largest diversified retail business, Wesfarmers' shareholders are afforded luxuries uncommon to many others in the market. Its sales are huge, its dividends reliable, and its diversification is almost unparalleled amongst Australia's largest blue-chip stocks. However, it now appears Wesfarmers' appeal has got ahead of itself. Indeed, at today's prices of $41.70, personally I believe Wesfarmers' shares have moved outside a prudent buying range. I'd rate the owner of Coles, Bunnings, Officeworks and more, as a hold.
Rio Tinto
Australia's largest iron ore miner and the world's second-largest producer has had a tough time of late. With the market prices of a majority of the commodities which Rio Tinto produces falling hard in recent months, unsurprisingly its share price hasn't been spared. However, despite falling around 18% over the past year, Rio Tinto shares are not a sound investment today. In fact, with many commodities still in oversupply, I'd advise investors to consider taking profits (or losses) off the table – it's a sell in my book.
