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

Person holding a blue chip.
Opinions

Buy alert! 2 ASX 200 blue-chip shares worth a look now: expert

Dylan Evans from Catapult Wealth has identified two blue-chip shares that he thinks are good buys today.

Read more »

A group of young friends celebrating and toasting with beers
Blue Chip Shares

This beaten-down ASX 200 stock could be a turnaround story

Let's see if analysts think this stock is a buy after its heavy decline.

Read more »

A young woman sits on a sofa in a stylish home with her laptop computer balanced on her knee and smiles with a satisfied look on her face at what she's seeing on the screen.
Blue Chip Shares

2 ASX blue-chip shares offering big dividend yields

These stocks could provide strong passive income.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Blue Chip Shares

3 ASX 200 blue chip shares to buy with $3,000 in July

Analysts have recently named these well-known stocks as top buys.

Read more »

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Blue Chip Shares

3 fantastic ASX shares to buy for an SMSF

Let's see why these shares that brokers rate as buys could be top picks for super investors.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Blue Chip Shares

Buy these fantastic ASX 200 blue chips with $10,000

Analysts think these top stocks are buys right now.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Blue Chip Shares

The best ASX shares to buy and forget for 10+ years

Want to make long term investments? Here are three picks that brokers rate as buys.

Read more »

An ASX investor in a business shirt and tie looks at his computer screen and scratches his head with one hand wondering if he should buy ASX shares yet
Blue Chip Shares

This popular ASX 200 blue-chip share has literally gone nowhere in 17 years

Even blue-chip shares can fall short.

Read more »