GMG, RMD: Two ASX blue-chip stocks with over 25% past year returns

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Highlights

  • Blue-chip stocks belong to companies with strong balance sheets and stable cash flows.
  • These stocks are usually lapped up by investors who aim to cut down their investment risk.
  • GMG and RMD are two ASX-listed blue-chip stocks which can be looked at.

Investors generally add strong and fundamentally sound businesses to their portfolio to lower the investment risk. Such stocks, which belong to firms with stable cash flows and extensive operations, are referred to as blue-chip stocks and are better placed in case of market uncertainties when compared with their peers.

On this note, let’s discuss two blue-chip stocks with over 25% returns in the past year:

Goodman Group (ASX:GMG)

A global industrial group, Goodman Group deals with industrial real estate across 14 nations. It is engaged in property services, property development, property management and funds management business.The Group’s main markets are located in Australia and New Zealand, United Kingdom, Asia, Europe, and US.

The stock has delivered a negative year-to-date (YTD) return of nearly 13%, while it has risen over 30% in the past year.

The Group has witnessed robust demand for its properties in the recent past, which is supportive of solid earnings and dividend growth. The Group’s assets also have exposure to structural tailwinds including e-commerce and digital economy, which may boost rental growth going ahead, according to experts.

In addition, the Group has AU$12.7 billion of development work in progress. It is expected to set up the company for further growth in the next few years.

“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,” Goodman Group CEO Greg Goodman, recently said.

ResMed Inc (ASX:RMD)

ResMed Inc is a leading cloud-connected devices health company. The company focuses on sleep treatment and holds a portfolio of products which improve the lives of those who suffer with conditions such as sleep apnoea.

The stock has delivered a negative year-to-date (YTD) return of over 7%. In the past year, the stock has risen over 27%.

ResMed CEO Mick Farrell recently reaffirmed: “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.”

Meanwhile, the company reported a double-digit topline revenue growth last month, which was attributed to high demand for sleep and respiratory care products, and solid growth in the software-as-a-service segment in the three months ended 31 December 2021.  However, the company’s gross margin shrank by 230 basis points.

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