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.
