BHP Group (BHP) Stock Is Bruised, But Is It Still a Buy?

Despite closing -0.61 points lower on 14 March, BHP Group (NYSE:BHP) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Friday. The shares dropped -1.16 percent at $52.2 with a light trade volume of 1.983 million shares. . The firm is left with a market cap of $127 billion and now has 2.43 billion shares outstanding. BHP Group (BHP) stock has gained 1.85 percent of market value in 21 trading days.

BHP stock has a trailing 3-year beta of 0.86, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.32 a share in the trailing twelve months. The stock’s value has surged 12.73 percent year to date (YTD) against a rise of 21.52 percent in 12 month’s time. The company’s shares still trade -4.62 percent away from its 1-year high of $54.73 and 26.31 percent up from 52-week low of $41.33. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

BHP Group (BHP) will probably climb -4.66 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $58.81-month high price target. This represents a whopping 12.66 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $51.57, which represents a return potential of -1.21 percent when compared to the closing price of the stock of $52.2 on Thursday, March 14. The lowest price target for the stock is $36.62 — slightly more than -29.85 percent from BHP’s current share price.

History has shown that shares in BHP Group have gone up on 2 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $52.08. Below this, the next support is placed in the zone of $51.97. Till the time, the BHP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.17 on daily chart, which may remain a cause for concern. If the price breaks below $51.97 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $52.39 mark may result into a pull-back move towards $52.59 level.

Shares of BHP Group (BHP) are trading at a P/E ratio of 18.73 times earnings reported for the past 12 months. The industry BHP operates in has an average P/E of 16.88. Its P/E ratio went as low as 11.64X and as high as 31.72 over the 5-year span.Further, it is sporting a 2.92 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3928.37.