The ASX is home to a good number of high quality blue chip shares for investors to choose from.
But with so much choice, it can be hard to decide which ones to buy. To narrow things down for you, I've picked out three blue chip shares which I think are in the buy zone right now.
They are as follows:
Cochlear Limited (ASX: COH)
I think that this hearing solutions company is one of the best blue chips on the Australian share market. This is because I feel it is well-placed to continue growing both its sales and profits at a solid rate for a very long time thanks to the ageing population tailwind. According to the World Health Organization, an estimated 524 million people were aged 65 or over in 2010. This was the equivalent of 8% of the global population. By 2050, this number is expected to nearly triple to around 1.5 billion, representing 16% of the global population. As hearing invariably fades as we age, I expect this to lead to a material increase in Cochlear's addressable market over the next three decades.
REA Group Limited (ASX: REA)
Another blue chip share that I think would be a great long-term investment option is REA Group. It is the company behind realestate.com.au and a number of international equivalents. I have been very impressed at the way the company has continued to generate solid profit growth despite the housing market downturn and believe this is a testament to the quality of its management and business model. The good news is that the recent election result, rate cuts, and APRA's plan to reduce the mortgage serviceability threshold could lead to a recovery in the housing market in the near term. I believe this could put REA Group in a position to accelerate its earnings growth.
SEEK Limited (ASX: SEK)
A third and final blue chip share to consider is this job listings company. I believe that thanks to its strong core business, growing international operations, and its investment in future growth opportunities, SEEK is well-placed to grow its earnings at an above-average rate over the next decade. However, due to the aforementioned investments, SEEK's earnings will be down slightly in FY19. I think investors should look beyond this and focus on its top-line growth, which management expects to be in the region of 16% to 20%.
