Stock of the Day

April 14, 2020

BHP Group (BHP)

$51.42
-$0.70 (-1.3%)
Market Cap: $132.14B

About BHP Group

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. The company was founded in 1851 and is headquartered in Melbourne, Australia.

BHP Group Bull Case

Here are some ways that investors could benefit from investing in BHP Group Limited:

  • BHP Group Limited has a current stock price of $51.57, which is near its 52-week low of $48.06, potentially offering a buying opportunity for investors looking for value.
  • The company has a market capitalization of $130.78 billion, indicating a strong presence in the market and the ability to leverage resources for growth.
  • Analysts have a consensus rating of "Moderate Buy" for BHP Group Limited, with an average target price of $53.00, suggesting potential upside from the current price.
  • BHP Group Limited operates in multiple segments, including Copper, Iron Ore, and Coal, providing diversification that can help mitigate risks associated with market fluctuations in any single commodity.
  • The company maintains a healthy debt-to-equity ratio of 0.38, indicating a lower level of debt relative to equity, which can be a sign of financial stability and lower risk for investors.

BHP Group Bear Case

Investors should be bearish about investing in BHP Group Limited for these reasons:

  • Recent analyst downgrades, including a reduction in price target from $57.00 to $53.00, may indicate concerns about the company's short-term performance.
  • The stock has experienced a decline of 0.5% recently, which could signal weakness in investor sentiment and market confidence.
  • BHP Group Limited's 50-day moving average price is $49.93, which is below the current stock price, suggesting potential resistance levels that could hinder upward movement.
  • With a beta of 0.95, the stock is slightly less volatile than the market, which may not appeal to investors seeking high-growth opportunities in more dynamic sectors.
  • Three analysts have rated the stock with a hold rating, indicating uncertainty about its future performance and suggesting that investors may want to wait for clearer signals before investing.

Recent News