2 excellent ASX 200 blue chip shares rated highly

Woolworths Limited (ASX:WOW) and this ASX 200 blue chip share could be great options for investors this week. Here's what you need to know…

| More on:
A compass with the word opportunities is shown in black and blue representing a broker upgrade on the EML share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you wanting to add some blue chip ASX 200 shares to your portfolio? If you are, then you might want to check out the two listed below.

These quality companies have been tipped as ones that could grow at a solid rate over the next decade, potentially generating strong returns for investors. Here's why they are highly rated:

Sonic Healthcare Limited (ASX: SHL)

The first blue chip ASX 200 share to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

Partly due to COVID-19 testing, Sonic has been a very strong performer so far in FY 2021. During the first half, the company reported a 33% increase in revenue to $4.4 billion and a 166% jump in first half net profit to $678 million.

The good news is that COVID testing looks set to continue for some time to come, which bodes well for the company's growth in the second half and FY 2022. After which, the rest of its business looks well-placed to benefit from a backlog in healthcare work.

In addition to this, due to its strong balance sheet, Sonic has the opportunity to accelerate its growth through acquisitions.

One broker that is particularly positive on the company is Credit Suisse. It currently has an outperform rating and $40.00 price target on the company's shares.

Woolworths Limited (ASX: WOW)

Another blue chip ASX 200 share to consider is Woolworths. Like Sonic, this retail giant has also been performing strongly in FY 2021.

Thanks to positive performances by its BIG W, BWS, Dan Murphy's, Woolworths supermarkets businesses, the company reported a 10.5% increase in revenue to $35.8 billion and a 15.9% increase in net profit after tax to $1,135 million.

And while its growth will moderate in the second half when it cycles the panic buying at the height of the pandemic, Woolworths remains well-placed for growth in a post-pandemic world according to Goldman Sachs.

The broker is positive on the company and retained its buy rating and $43.60 price target on its shares this morning.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Blue Chip Shares

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
Blue Chip Shares

Why these ASX 200 blue chip shares could generate big returns

Brokers think these shares are could be dirt cheap at current levels.

Read more »

Man sits smiling at a computer showing graphs
Blue Chip Shares

3 ASX shares Australians can buy and hold for the next decade

Analysts think these high quality stocks could be in the buy zone right now.

Read more »

2 women looking at phone
Blue Chip Shares

3 high quality blue chip ASX 200 shares to buy in November

Here are a few blue chip shares that have been rated as buys this month by analysts.

Read more »

A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer
Blue Chip Shares

2 of the highest-quality blue chip ASX 200 stocks money can buy

Analysts think these blue chips are top buys for investors right now. But why?

Read more »

Three smiling corporate people examine a model of a new building complex.
Blue Chip Shares

This blue chip ASX 200 stock is 'among the highest-quality names' under coverage

Goldman Sachs thinks this blue chip is a top buy.

Read more »

A business woman flexes her muscles overlooking a city scape below.
Blue Chip Shares

Brokers name 2 strong ASX 200 shares to buy now

These shares are among the top picks on the benchmark ASX 200 index according to analysts.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Blue Chip Shares

Up 47% in a year: This blue chip ASX 200 stock can keep rising

Bell Potter is feeling bullish about this stock. But why?

Read more »

A man looking at his laptop and thinking.
Blue Chip Shares

Should you buy Coles and Mineral Resources shares this month?

Are these blue chips buys? Let's see what Bell Potter is saying about them.

Read more »