3 excellent ASX 200 blue chip shares to buy in May
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If you are in the process of building an investment portfolio, then having a few ASX 200 blue chip shares in there could be a good starting point.
Blue chips are typically large companies that have been operating for many years, have stable cash flows, experienced management teams, and positive outlooks.
It is these qualities that can make them a good foundation to build a portfolio from.
But which ASX 200 blue chip shares could be buys in May? Listed below are three high quality companies to consider this month:
CSL Limited (ASX: CSL)
The first ASX 200 blue chip share that could be a buy is CSL.
It is one of the world’s leading biotechnology companies and arguably Australia’s highest quality company. It comprises the CSL Behring, CSL Vifor, and Seqirus businesses. These are leaders in their respective fields of blood plasma products, kidney therapies, and vaccines.
UBS is a big fan of the company and believes that recent weakness has created a buying opportunity for investors. This is particularly the case given that it is forecasting double-digit earnings growth over the next three to four years.
UBS has a buy rating and $330.00 price target on the company’s shares.
Goodman Group (ASX: GMG)
Another ASX 200 blue chip share that could be a buy for investors according to analysts is Goodman Group. It is a leading integrated commercial and industrial property company.
Thanks to the overwhelming success of its strategy of developing high-quality industrial properties in strategic locations, as well as insatiable demand for these types of assets, Goodman has been growing at a strong rate over the last decade.
Morgan Stanley believes this positive form can continue, especially given its exposure to the artificial intelligence boom through its data centre pipeline.
The broker currently has an overweight rating and $35.30 price target on its shares.
Woolworths Limited (ASX: WOW)
Finally, Goldman Sachs thinks that supermarket giant and BWS owner Woolworths could be an ASX 200 blue chip share to buy.
While the market may have sold off its shares recently due to regulatory concerns and market share losses, Goldman believes that this has been overdone and created a buying opportunity for investors.
Especially with its shares on lower than normal multiples and the broker still expecting decent growth in the coming years. Its analysts note that “we forecast WOW 2-yr sales CAGR FY24-26e of +3.2% and EBIT growth of +4.8%. The stock is trading at FY24E P/E of 20x vs 2-yr EPS CAGR of 6% and against an average of 26x since 2018.”
The broker has a buy rating and $39.40 price target on its shares.
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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, and Goodman Group. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.