As most ASX investors would be happily aware, the S&P/ASX 200 Index (ASX: XJO) has had a wonderfully successful few months. Over July, the ASX 200 has reset its record high more than once, hitting a top of 8,083.7 points in the middle of the month. But one stock was conspicuously absent from this euphoria – BHP Group Ltd (ASX: BHP) shares.
When the market hits a new record high, you can expect to see some of the ASX's major blue chips also reaching new heights. Indeed, the past few months have seen shares ranging from Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB) to CSL Ltd (ASX: CSL) and Wesfarmers Ltd (ASX: WES) clock new 52-week highs of their own.
But not BHP.
Yesterday, the 'Big Australian' closed at $42.07, down 0.07% for the day. Not only does that leave BHP down 2.84% over the past month alone, it means that the mining giant has lost a whopping 16.76% in 2024 to date.
Take a look for yourself below:
As such, we can conclude that the ASX 200 reached new records this month despite BHP shares, not because of them. BHP remains the second-largest stock in the ASX 200 by size and influence, having lost its crown as Australia's largest public company to CBA earlier in the month.
But does the downward trajectory of BHP shares in 2024 mean that investors should take another look at the miner today?
Image Source: Getty Images
Are BHP shares a buy today after losing 16% in 2024?
Let's put these falls in context first. It's likely that BHP has faced this share price pressure in 2024 due to falling commodity prices. Iron ore, in particular, has come off the boil this year after a few years of record prices.
As one would expect, this seems to have resulted in BHP, as well as other major ASX miners like Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO), experiencing sharp drops in value over the past seven or so months.
But do these falls leave BHP shares looking cheap?
Well, I would posit that BHP is indeed looking cheap right now. Not bargain-basement cheap, but good value nonetheless. Today, BHP is trading at the same share price as it was in December of 2020. Yet it also currently has a trailing dividend yield (which also comes fully franked) of 5.58%.
This is a world-leading miner with exposure to mostly future-facing commodities like iron ore, copper, nickel and potash. BHP is also no longer meaningfully exposed to oil or thermal coal.
As such, today's pricing is a decent entry point for long-term investors looking for a diversified, world-class resources stock to add to their portfolio.
