If you're wanting to build a strong portfolio, then having a few blue chips in there could be a good starting point.
But which blue chips should you buy? Two highly rated blue chip shares are listed below. Here's why they could be in the buy zone right now:
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Goodman Group (ASX: GMG)
The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of warehouses, large scale logistics facilities, and business and office parks.
It has been experiencing very strong demand for these properties in recent years, which is underpinning solid earnings and distribution growth.
Goodman's CEO, Greg Goodman, recently commented: "The results of the deliberate positioning of our portfolio over the last decade to adapt to and leverage the changes in the digital economy, are now being realised. Customer demand for high-quality properties close to consumers has never been greater."
But it gets better. Goodman has $12.7 billion of development work in progress, which is expected to underpin further growth over the coming years.
Citi is a fan of Goodman. It currently has a buy rating and $28.00 price target on the company's shares. The broker believes that Goodman's earnings per share guidance for FY 2022 is conservative.
ResMed Inc. (ASX: RMD)
Another blue chip ASX 200 share to look at is ResMed. It is a sleep treatment-focused medical device company with a portfolio of industry-leading products that are improving the lives of sufferers of conditions such as sleep apnoea.
The good news is that this is a huge market with just an estimated one fifth of sufferers currently diagnosed. This gives ResMed a long runway for growth in the future.
For example, ResMed's CEO, Mick Farrell, recently reaffirmed his expectation for the company to improve a quarter of a billion lives by 2025.
He commented: "Despite constantly evolving market dynamics, we remain focused on our goal to improve 250 million lives in the year 2025; supporting patients with the sleep apnea therapy, respiratory care therapy, and digital health solutions they need as we deliver value for all of our customers."
The team at Morgans is very positive on ResMed. It has an add rating and $40.46 price target on the company's shares. The broker believes ResMed is "well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain."
