Plenty of investors are drawn to the idea of blue chip names because they seem more secure and could produce more reliable growth.
But I don’t think that has to means shares like Commonwealth Bank (ASX: CBA) or Telstra (ASX: TLS).
Here are some blue chip growth names that (nearly) everyone knows:
A2 Milk (ASX: A2M)
A2 Milk is Australia and New Zealand’s leading infant formula business, it also offers a number of other dairy products like milk and ice cream.
Why it could be a good growth story: A2 Milk’s share price has declined quite a lot since the start of August, yet the company is still predicting solid revenue and profit growth in FY20. The China and US markets are big opportunities for growth, so I think profit could keep going up at a good rate for years.
APA Group (ASX: APA)
APA Group is the owner of a large amount of pipeline infrastructure around Australia.
Why it could be a good growth story: Energy infrastructure is very important in the current environment. APA continues to invest in new assets which should lead to higher earnings over time. It’s also a decent yield idea if interest rates keep going lower.
Crown Resorts (ASX: CWN)
Crown Resorts is the operator of two large casino complexes in Melbourne and Perth.
Why it could be a good growth story: The company is currently constructing the new major casino complex in Sydney. It’s a drain on earnings in the construction phase, but once it’s completed in a couple of years it could add significantly to earnings.
CSL (ASX: CSL)
CSL is Australia’s biggest healthcare business, it’s a biotech company that develops products like vaccines to help patient.s
Why it could be a good growth story: There are few large companies on the ASX with growth records like CSL. The fact it re-invests so much into further research & development every year unlocks future new earnings streams for the healthcare giant. It can keep growing at a good pace.
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