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3 strong blue-chip buying opportunities this week

Daryl Mather
blue chip shares

Reporting season is a great time for knowledgable and active investors as most major issues are often disclosed before mid-year reports. This is an effort to reduce the impact on the share price during reporting season, or to enable a company to focus on mainly good news. For example, Downer EDI Ltd (ASX: DOW)’s share price fell by over 20% when it recently reduced its FY20 guidance.

These three blue-chip companies have a solid track record for performance and have disclosed only good news and growth opportunities in recent times.

Magellan Financial Group Ltd (ASX: MFG) recently announced it has broken the $100 billion funds under management barrier, with net inflows of $414 million. All of its directors have increased their holdings via dividend reinvestment schemes recently. Hamish Douglass as chairman and lead portfolio manager has a solid track record of performance, making him a billionaire and many investors millionaires.

Given where the company is on the growth and dividend growth curves, I fully expect Magellan to deliver strong mid-year earnings and the Magellan share price to get a bump from this. 

Magellan is due to report on Thursday 13 February.

CSL Limited (ASX: CSL)’s share price is presently selling at an all time high. Regardless, the global vaccine company has already forecast higher results pressuring the share price even higher. In the wake of the coronavirus it is well positioned for an increased global focus on vaccinations, even though the coronavirus doesn’t fall within its core areas.

CSL is due to report on Wednesday 12 February.

Commonwealth Bank of Australia (ASX: CBA) is likely to report strong mid-year results and has already provisioned $83 million for bushfire claims. This will add additional momentum to its share price after recent news on the innovations at the bank. These include Vonto, an app design for small businesses with Xero Limited (ASX: XRO) and Klarna, a digital payments app as part of an assault on Afterpay Ltd (ASX: APT).

Investors will be interested in news of a rise in the CBA dividend after it has successfully navigated recent inquiries and regulation changes.

Commonwealth Bank is due to report on Wednesday 12 February.

Foolish takeaway

Earnings season is always a good time for informed investors to lock in good trades and review their portfolios. This is week 2 of a 4-week period with a large number of companies reporting next week. 

The post 3 strong blue-chip buying opportunities this week  appeared first on Motley Fool Australia.

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Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020