According to John Davis at Equithy, ASX 200 listed blue chip shares can be a great way to strengthen your portfolio. Not only are they highly rated by various other analysts in the market, but they are also expected to be top buys in the market. These blue-chip stocks are especially good for beginners since most people who are starting out trading can struggle with finding the right type of stocks to invest in.
Luckily, some additions to the ASX are showing a lot of promise and can be a great addition to most investors’ portfolios. These shares listed below were picked up by professional senior account manager John Davis at Equithy and show some promise for any well-managed portfolio.
Goodman Group (ASX: GMG)
As one of the leading industrial property companies in the country, the Goodman Group can be an excellent blue-chip stock to invest in. It has a wealth of assets in its portfolio that span the entire globe, with many of its shares being strong performers. In fact, these shares have offered some of the highest returns compared to most other types of assets in the same market.
Many analysts are confident in GMG for its high single-digit or even low double-digit growth. It is experiencing this growth over the medium term through long-term development projects. While it is trading below worldwide industrial peers, it does have lower leverage and higher earnings.
Westpac Banking Corp (ASX: WBC)
Despite being one of the country’s oldest banks, John Davis at Equithy believes that it can make for a good ASX 200 blue chip share to buy. Westpac can have a very bullish run since it has the most potential for equity return compared to the other major banks. Some of the factors that are contributing to its increased potential are the improved processing capability for loans and various cost reductions.
There is also a reduced regulatory credit risk with Westpack for non-home-related loans. Their yields are especially attractive to more income-oriented investors and individuals looking for better share price growth.
Telstra Corporation (ASX: TLS)
Telstra Corporation is another highly rated ASX 200 blue chip buy since it is Australia’s biggest telecommunications company. Many analysts, including John Davis at Equithy, hold Telstra in high regard for the good value its shares offer at current levels. It also has a lot more room to grow since the present trading conditions are quite positive.
Analysts also believe that the company can make more value through asset divestments, especially with the increasingly rational market. Its position, especially when compared to the other telecommunications companies in the industry, Telstra is behaving in an economically rational way.
To conclude, Equithy senior account manager John Davis has stated that these are some of the biggest blue chip stocks to invest in for the ASX 200. Along with holding the most promise, they are also inspiring confidence in analysts for their wealth of assets and their better business practices.