Mining heavyweight BHP Billiton Limited (ASX: BHP) has seen 80 cents or 2.1% shaved off its share price today as the broader S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has dived a further 1.2%. BHP's shares have now dropped 4.2% since last Wednesday and are sitting at $37.67.
Over the last 12 months, the stock has traded between a low of $34.35 and a high of $39.79. At today's price it is trading on a projected P/E ratio of 13.8 times.
Today's heavy fall comes despite a very impressive earnings report from primary rival Rio Tinto Limited (ASX: RIO) yesterday after the market's close. The miner defied tumbling iron ore prices to more than double its half-year net profits which greatly improves the outlook for BHP Billiton's full-year report, set to be released on Tuesday 19 August, 2014.
The pain hasn't been limited to just BHP and Rio Tinto either. Fortescue Metals Group Limited (ASX: FMG) has been smashed for six with its shares down 3.4%, while BC Iron Limited (ASX: BCI) has dropped 1.2%.
Is BHP Billiton Limited a buy today?
BHP Billiton seems like a decent buy for investors wanting exposure to the iron ore sector as well as a decent dividend income. However, BHP's sheer size could affect its ability to generate massive capital gains over the coming years. Luckily, we've uncovered three much smaller resources companies which could be big winners in the future.