In case you missed it, many popular ASX stocks have been volatile in the last few days. Fears of a US recession, the Reserve Bank of Australia (RBA)'s interest rate decision, and ongoing global tensions sparked a sharp sell-off before investors piled in for a feast.
The benchmark S&P/ASX 200 Index (ASX: XJO) tumbled 5.7% from its highs of 8,114 points on August 1 to close at 7,649 points on Monday.
It clawed back some losses today and finished trading up 0.41%.
With all the trading activity, we spotlight the three most popular ASX stocks today. I'll define 'popular' based on the highest dollar value of shares traded this Tuesday.
Based on live market data obtained from CommSec, the most popular ASX stocks by trading value today were BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woodside Energy Group Ltd (ASX: WDS).
Do you own these stocks? Whether yes or no, let's take a closer look.
Popular stocks participate in rebound
The ASX caught a strong bid today, led by some market leaders. BHP was one of them. Shares in the mining giant finished trading at $41.26 each, up 0.37%.
Investors turned over $521.8 million worth of stock in the miner, making it the most popular on the ASX today.
Recently, BHP has faced challenges due to declining iron ore prices. The stock is down 9% in the last twelve months, largely due to a drop in iron ore and copper prices.
While the company didn't release anything price-sensitive today, investors bought ASX shares en masse today, and it's no surprise to see the world's largest mining company atop the list.
It might help that brokers are bullish on the stock too.
Morgan Stanley rates BHP as a hold with a price target of $46.30, implying a 12% upside from current levels.
Morgans is more optimistic, with an add rating and a $49.20 price target, suggesting a 19% potential.
CBA catches a bid
CBA shares also turned a corner in trading today, finishing more than 2.24% higher at $127.69 apiece.
Investors bought and sold $356.4 million worth of CBA shares, per CommSec data.
The banking stock has been one of the ASX's darlings in recent times, outperforming all major indices and its banking peers.
With this backdrop, it is a popular ASX stock and a major index constituent. If investors are buying large-cap ASX shares – even through exchange-traded funds (ETFs) – chances are, many are likely buying CBA.
Shares in the bank have surged by 25% over the past year. Broker opinions are mixed from here.
UBS has a sell rating on CBA with a $107 price target, indicating a potential 16% downside.
Bell Potter and L1 Capital also express concerns over CBA's high valuation and low dividend yield relative to the cash rate.
Not all upsides for these popular ASX stocks
It wasn't all green on the list of most popular stocks today. Whilst it might seem strange, Woodside shares finished the day down 5.14% on Tuesday, fetching $25.12.
But they were tremendously popular among investors today. $327 million worth of Woodside shares exchanged hands today.
On Monday, the energy giant announced a US$2.35 billion acquisition of OCI Clean Ammonia. Investors didn't respond positively to the announcement despite it being a popular ASX stock today.
Goldman Sachs views the acquisition cautiously but sees potential. It notes the deal fits within Woodside's strategy for new energy projects, expecting a 10% internal rate of return.
Citi, however, criticises the timing, suggesting the acquisition cycle may be wrong, and better assets might become available later.
Morgans, however, is bullish on the company. It rates Woodside a buy with a $35.00 price target, implying a 39% upside after the sell-off.
Takeout
BHP, CBA, and Woodside were the most popular companies on the ASX today by the value of shares traded.
Whether you own these shares or not shouldn't change anything about a disciplined investment approach. As always, conduct your own due diligence before making investment decisions.
