Highlights
- Blue-chip stocks are popular among investor as these are considered to be the highest quality stocks.
- They have robust balance sheets, capable management, and well-established businesses with consistent cashflows.
- However, one needs to do thorough research before taking any exposure, as sinusoidal market trends are evident.
Blue-chip stocks are considered to be the highest-quality stocks present in the stock market. They have robust balance sheets, capable management, and well-established businesses with consistent cashflows. Blue-chip stocks have historically pipped the benchmark index in terms of returns. Since these provide good returns with lower risks, investors include blue-chip stocks in their portfolios. However, one needs to do thorough research before taking any exposure, as sinusoidal market trends are evident.
On this note, let’s discuss two ASX blue-chip stocks which can be looked at by investors this week:
CSL Ltd (ASX:CSL)
CSL operates in the healthcare segment and is engaged in the development, research, manufacturing and marketing of cell culture media, human plasma fractions, pharmaceutical and diagnostic products. The biotechnology company comprises the CSL Behring and Seqirus businesses.
The stock has delivered a negative year-to-date (YTD) return of over 11%. In the past five years, the stock rose by over 132%.
The company seems to grow decently once challenges due to COVID-19 on plasma collections ease. Prospects of growth look strong amid robust demand for the company’s immunoglobulins and vaccines.
The company also recently announced the proposed acquisition of Vifor Pharma, which is expected to boost its offering in other lucrative markets. Post Vifor’s acquisition, the company had announced a net profit after tax (NPAT) guidance in an approximate range between US$2.15 billion to US$2.25 billion.
Source: © Kiosea39 | Megapixl.com
ResMed Inc (ASX:RMD)
ResMed Inc is a health care company, which is a medical device manufacturing unit particularly. It currently has a focus on the growing sleep treatment market.
According to the company’s management, there are more than one billion people across the world who are suffering from sleep apnea. Still, many more are there to be diagnosed. It opens a range of market opportunities for the company going forward.
The company recently led to the development of its new CPAP device, AirSense 11. The device has done well for itself in the recent past and one of the company’s largest rivals is currently dealing with a significant product recall of 5.2 million CPAP devices.
The stock has delivered a negative year-to-date (YTD) return of over 9%. In the past five years, the stock rose by over 258%.
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