When the S&P/ASX 200 Index (ASX: XJO) is trading near record highs, it’s natural to feel cautious. At around 8,916 at the time of writing, the index is not far from its peak of 9,115, which makes broad market buying feel a little less comfortable.
That’s usually when I start looking for high-quality blue chips that haven’t kept pace with the index and still offer a margin of safety.
One ASX blue-chip stock that fits that bill for me right now is Goodman Group (ASX: GMG).
Goodman shares are trading around $30.96 at the time of writing, well below their 52-week high of $37.31.
A different kind of REIT
Goodman is often grouped in with traditional real estate investment trusts (REITs), but I think that misses the point. This is not a passive rent-collection business.
Goodman owns, develops, and manages logistics facilities and data centres in some of the most supply-constrained metropolitan markets in the world. These assets sit at the heart of e-commerce, automation, cloud computing, and artificial intelligence (AI) infrastructure. Demand for that combination is structural, not cyclical.
That positioning is becoming increasingly important as customers invest heavily in automation, robotics, AI, and digital infrastructure.
Development momentum is building
Goodman’s most recent operational update showed just how much activity is underway across the group.
As at 30 September 2025, Goodman had $12.4 billion of development work in progress, with projections pointing to more than $17.5 billion by June 2026. Data centres now represent 68% of work in progress, highlighting how central digital infrastructure has become to the strategy. Occupancy across partnerships remains high at 96.1%, and the group reaffirmed its forecast of 9% operating earnings per share (EPS) growth for FY26.
What I find particularly appealing is that much of this development is taking place in highly constrained markets, where access to land and power creates meaningful barriers to entry.
Data centres are a long-term tailwind
One of the most important parts of the Goodman story today is data centres.
The group has built a global power bank of 5.0 GW across 13 major cities, with 3.4 GW already secured and a further pipeline under development. These projects are typically 100% leased to hyperscale and colocation customers, providing long-dated, high-quality income streams once stabilised.
Late last year, Goodman deepened this opportunity by launching a $14 billion European data centre partnership with CPP Investments, focused on prime locations in Frankfurt, Amsterdam, and Paris. These projects benefit from secured power, advanced planning approvals, and speed-to-market advantages that are hard to replicate.
To me, that partnership is a strong external validation of the quality of Goodman’s development platform.
Why I’m comfortable despite the ASX 200 Index being high
At a time when the broader market looks expensive, Goodman stands out because its growth is being driven by execution rather than multiple expansion.
The shares are not cheap in absolute terms, but they are cheaper than they were a year ago, while the underlying opportunity set has arguably improved. Between logistics consolidation, automation, and data centre demand tied to cloud and AI, Goodman has several long-duration growth drivers working in its favour.
Foolish Takeaway
With the ASX 200 hovering near record levels, I’m not rushing to buy the market indiscriminately. But I am happy to look for high-quality businesses that are still trading below their highs and continue to build long-term value.
For me, Goodman Group fits that description well. It’s a blue-chip ASX stock with global scale, structural tailwinds, and a visible development pipeline. If I were looking to put money to work selectively at these market levels, this is one stock I would seriously consider.
The post 1 ASX blue-chip stock I’d consider buying with the ASX 200 around 8,900 appeared first on The Motley Fool Australia.
Should you invest $1,000 in Goodman Group right now?
Before you buy Goodman Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Goodman Group wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
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More reading
- How a beginner investor could build a $250,000 ASX share portfolio
- These ASX 200 shares could be no-brainer buys
- 5 fantastic ASX shares to buy for an SMSF
- How to build a $50,000 portfolio with ASX 200 shares
- How much could I make investing $500 a month in ASX shares?
Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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