If you aim to bolster your investment portfolio following the ASX 200 downturn, consider these options: blue chip shares, then read on.
This is due to the fact that the list below includes two premium blue-chip stocks that analysts believe could be excellent choices for investors at present.
This is what people are saying about them:
Transurban Group ( ASX: TCL )
For consistent and dependable income streams, Transurban stands out as an excellent choice. Being among the biggest operators of toll roads globally, they possess vital assets spanning both Australia and North America.
Toll roads are essential assets with built-in pricing power, meaning Transurban can increase fees over time. This provides a strong and growing income stream, making it an ideal investment for those seeking passive income. With major projects underway and urban congestion showing no signs of slowing, Transurban could be an unstoppable force in the infrastructure space.
Bell Potter is very positive on the company's outlook and has named it on its best ideas list this month. It said:
We believe the current inflationary environment is favourable for TCL given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
Wesfarmers Ltd ( ASX: WES )
Another ASX 200 blue chip share that could be a buy is Wesfarmers. It is arguably the backbone of Australian retail, owning brands like Bunnings, Kmart, and Officeworks. But it's far more than just a retailer. The company also has interests in chemicals, industrials, healthcare, and lithium, making it a well-diversified conglomerate.
Wesfarmers' secret to success is its disciplined approach to capital allocation. The company has a history of making smart acquisitions and divestments, ensuring that shareholders benefit. With steady growth, defensive earnings, and exposure to multiple industries, Wesfarmers could be a fantastic blue chip to buy.
Goldman Sachs certainly believe that is the case. It recently named several reasons why it thinks it would be a stock to buy. The broker said:
We have a buy recommendation for WES based on 1) Bunnings market share gain against soft operating backdrop 2) Bunnings long term growth options in sales/sqm and Retail Media. 3) Portfolio management sees Lithium/Health scaling to deliver double digit EBIT growth in FY26. WES in our view is undervalued relative to these growth prospects. We are Buy rated on the stock.
The post 2 strong ASX 200 blue chip shares to buy after the market selloff appeared first on The Motley Fool Australia .
Is it wise to put $1,000 into Transurban Group at this moment?
Before purchasing Transurban Group shares, keep these points in mind:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks For investors looking for opportunities to purchase at this moment... Transurban Group was not among those recommended.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
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More reading
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- How I would make $10,000 of annual passive income from ASX shares
- Here's the earnings forecast out to 2029 for Wesfarmers shares
Motley Fool contributor James Mickleboro does not hold any shares in the companies mentioned above. However, Motley Fool Australia’s parent company, Motley Fool Holdings Inc., owns stakes in and recommends Goldman Sachs Group, Transurban Group, and Wesfarmers. Additionally, Motley Fool Australia also endorses Wesfariners. Nonetheless, The Motley Fool maintains its disclosure policy. disclosure policy . This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.