I think that having a few blue chip ASX 200 shares in your investment portfolio can be a smart move to make.
That's because blue chip shares tend to have strong business models, talented management teams, and positive long term outlooks. This can make them a great foundation when building a portfolio.
But which blue chip shares are in the buy zone in June? Let's now take a look at two quality picks that analysts at Bell Potter have named on their best ideas list for the month ahead. They are as follows:
The first blue chip ASX 200 share that has been given the thumbs up by the team at Bell Potter is online auto listings company CAR Group.
The broker believes the carsales.com.au operator is well-placed for growth as it replicates its winning model across its global portfolio. In addition, it feels that recent share price weakness has created an attractive buying opportunity for investors. It said:
The company continues to enhance yields across its platforms while benefiting from a scalable global expansion strategy that allows it to replicate its model across international markets. Additionally, CAR boasts a proven management team with a strong track record of capital allocation and consistent EPS growth over time, reinforcing confidence in its long-term potential.
Given its solid growth trajectory and resilient fundamentals, we believe the recent share price weakness presents a compelling buying opportunity.
Another blue chip ASX 200 share that makes the broker's best ideas list this month is Aristocrat Leisure.
It is a global gaming content creation company that operates through three segments. These are gaming (poker machines), Product Madness (social casino games on mobile and web), and Interactive (real money gaming).
The broker believes that Aristocrat's shares are undervalued relative to its positive earnings growth outlook (double digit earnings per share growth through to 2027) and strong balance sheet. The latter gives it the opportunity to boost its growth with potential acquisitions or return funds to shareholders.
Commenting on the company, the broker said:
Trading at 23x 12MF P/E, down from ~27x in January, even as earnings continue to step higher, with ~13% EPS 2y CAGR. We like that they have balance-sheet fire-power with net cash and a fresh A$750 m on-market buy-back, which gives flexibility to keep rewarding shareholders while funding organic R&D and M&A in real-money gaming.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.