When building a robust investment portfolio, incorporating blue chip stocks can be a strategic move. Blue chips are typically large, well-established companies with years of operational history. They usually boast stable cash flows, strong business models, and experienced management teams. These qualities often make them lower-risk options and solid foundations for a portfolio.
Blue chip stocks are known for their ability to weather economic downturns and market volatility better than smaller, less established companies. Their solid financial footing and consistent performance provide a level of security and reliability that is highly valued by investors. In addition, blue chips often pay dividends, offering a steady income stream alongside potential capital appreciation.
But which blue chip ASX 200 shares should you consider buying this month? Here are two highly rated by analysts:
Coles Group Ltd (ASX: COL)
Analysts at Morgans recommend Coles Group as a top blue chip ASX 200 share to buy this month. Coles is a leading supermarket chain in Australia, known for its extensive network of stores and strong brand presence. Despite recent share price weakness due to regulatory concerns, Morgans views this as a buying opportunity. The supermarket giant has been named one of the broker's best ideas again this month, reflecting confidence in its long-term prospects and resilience.
Coles' stable revenue streams from essential goods, strategic initiatives in online shopping, and ongoing cost-efficiency programs make it a compelling choice for conservative investors looking for steady growth and reliable dividends.
Qantas Airways (ASX:QAN) Limited (ASX: QAN)
Goldman Sachs (NYSE:GS) identifies Qantas Airways as another undervalued blue chip ASX 200 share worth buying this month. The airline's valuation remains below pre-COVID levels, despite achieving structurally and sustainably stronger earnings. This discrepancy presents a potential opportunity for investors to capitalize on the airline's improved financial performance and operational efficiency.
Qantas, often referred to as the Fly Kangaroo, has demonstrated remarkable resilience and adaptability in the face of industry challenges. Its strong domestic market position, successful international operations, and strategic investments in fleet modernization and digital initiatives contribute to its robust outlook. Additionally, Goldman Sachs highlights that Qantas shares are trading at a discount compared to US airline stocks on Wall Street, suggesting potential upside and value for investors.