The BHP Group Ltd (ASX: BHP) share price was on the rebound today, posting its first gains in more than a week.
Shares in the world's second-largest miner were swapping hands for $45.68, up 1.11% at the market close today.
What's driving BHP shares higher?
There may be a few factors contributing to the BHP share price move into positive territory today.
Firstly, the ascent of iron ore prices is providing a strong support base for the company's margins. This is particularly important given the majority of revenue come from the steelmaking ingredient, BHP's key commodity.
Currently, the price of iron ore is fetching US$141.50 a tonne, up 3.66% in the past 24 hours.
It's worth noting that in the financial year ending 31 December 2021, iron ore accounted for more than half of the total group revenue from BHP.
In addition, the S&P/ASX 200 Resources (ASX: XJR) index has also pushed ahead, advancing 0.97% to 5,534.1 points.
The sector represents 48 of the largest companies in the S&P/ASX 200 that are members of the energy, metals and mining industry.
A positive shift in investor sentiment toward the index is likely to have propelled BHP shares forward.
In addition, commodity prices spiked when Russia attacked Ukraine on 24 February.
Lastly, analysts at Macquarie updated their outlook on BHP shares last month. The broker raised the 12-month price target by 6% to $54 apiece, representing a potential upside of around 20%.
BHP share price summary
Despite remaining relatively unchanged for the past 12 months, BHP shares have stormed 10% higher in 2022.
Investors heavily sold off the company's shares in August 2021 after reaching an all-time high of $54.55. Since then, its shares hit a 52-week low of $35.56, before surging to late August levels of around the $45 mark.
Based on today's price, BHP presides a market capitalisation of roughly $231.09 billion and has approximately 5.06 billion shares outstanding.
