Many of Australia's most popular blue-chip shares have underwhelmed of late. Whilst this is disappointing, I wouldn't let that put you off an investment.
Three blue-chip shares which I think have the potential to beat the market this year are listed below:
Aristocrat Leisure Limited (ASX: ALL)
As well as its solid pokie machine business, Aristocrat Leisure has a fast-growing digital segment which is generating high levels of recurring revenues. Thanks to the popularity of its product portfolio and a series of acquisitions, I expect the segment to be its growth engine for many years to come. The segment has been experiencing the perfect mix of strong increases in average daily users and average revenue per user. Something I value highly.
BHP Billiton Limited (ASX: BHP)
My favourite blue-chip in the resources sector would have to be mining giant BHP Billiton. Due to strong global growth forecasts leading to improved outlooks for both oil and iron ore prices, I think BHP is well-positioned to outperform in 2018. After all, almost two-thirds of its EBITDA is generated through its petroleum and iron ore businesses.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
I think it is fair to say that 2017 was a year to forget for this pizza chain operator. The former market darling surprised everyone in FY 2017 when its full-year result fell short of its guidance. I expect the company will bounce back with a strong result in FY 2018, which could make it worth considering as a buy today. Especially as the company's long-term plans should great a lot of value for shareholders. Domino's is targeting 4,650 stores by 2025, more than double its store count at the end of FY 2017.
