The BHP Group Ltd (ASX: BHP) share price has had a rollercoaster start to 2020. Shares in the Aussie iron ore miner are down 9.02% in 2020 but are still managing to outperform.
For context, the S&P/ASX 200 Index (ASX: XJO) has slumped 12.70% from where it began the year.
The BHP share price has started to gain some momentum in recent weeks. It's currently the largest ASX 200 share by market capitalisation and is valued at $165.5 billion.
But with all that's happening in the global and domestic economy, is BHP a cheap share to buy right now?
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Why the BHP share price could be cheap today
I think it's fair to say I've never been a huge resources sector investor. I am bullish on the future of renewable energy and the role that graphite, manganese and aluminium can play in that future.
However, ASX resources shares can be tough to value. Anything that relies on commodity prices as the basis for its value is likely to be volatile.
We've seen the BHP share price fall as low as $24.05 on 13 March before rebounding strongly to its current $35.41 valuation. That's good news for shareholders who managed to buy the dip but is the current price a bargain?
Iron ore prices are starting to rebound which is positive for BHP earnings. The group's shares are currently yielding 6.02% but there's no guarantees this will be maintained by the August earnings season.
I think the potential for an infrastructure boom is a big plus. If governments around the world look to infrastructure for stimulus, I'd expect the iron ore price to surge.
This could have a knock-on effect for the BHP share price and send it back towards its 52-week high of $42.33.
Foolish takeaway
There's no such thing as a safe bet in ASX 200 shares and this is especially true at the moment. However, the BHP share price could be a solid large-cap with upside potential to help boost a diversified portfolio beyond 2020.
