As almost all Australian investors would be painfully aware, the S&P/ASX 200 Index (ASX: XJO) was battered over Friday and Monday's trading. As were BHP Group Ltd (ASX: BHP) shares.
Over Friday and Monday's session alone, the ASX 200 crashed by a sizeable 5.7% – a two-day fall that might only be typical during a savage bear market. While the index recovered slightly yesterday, the reality is that most shares have seen major haircuts since last Thursday. That would include ASX 200 mining titan BHP.
BHP certainly did not escape the recent market carnage unscathed. Last Thursday saw the 'Big Australian' close at $42.49 a share. But the miner lost 1.2% on Friday and another 2.07% yesterday to close at $41.11 a share. Yesterday saw the miner rebound by 0.36% to finish at $41.26 a share. But that's still 2.9% away from where it was just three trading days earlier.
BHP is also still hovering fairly close to its 52-week low of $41. Its reigning 52-week high of $50.84 might look decidedly nostalgic for BHP shareholders right about now.
BHP investors might count themselves lucky that the miner handily outperformed the broader market over the market meltdown that we've just witnessed. After all, the ASX 200 fell 2.1% on Friday and a nasty 3.7% on Monday.
However, when we factor in that BHP shares remain down a rather depressing 18.36% year to date in 2024 (all while the ASX 200 is still in positive territory for the year), that 'luck' is put into context.
Check this all out for yourself below:
Are BHP shares a buy so close to their 52-week low?
Given this divergence between BHP and the broader stock market and the fact that the miner is at a 52-week low this week, many investors might be wondering whether BHP shares are a buy today. Let's see what one ASX expert thinks.
As reported by The Bull this week, Damien Nguyen from ASX broker Morgans, has just issued a 'buy' rating on BHP shares. Nguyen noted BHP's recent share price stagnation, its chunky dividend yield, as well as a favourable long-term outlook, as key reasons for this optimism over the miner. Here's what he said in full:
We view BHP as the best in class among large market capitalisation miners. Over the long term, BHP should benefit from having upgraded its operational and development activities in previous cycles.
The company was recently trading on a fully franked dividend yield above 5 per cent. The share price at recent levels represents an attractive entry point.
Morgans' view on BHP shares at present bears similarities to the recent views of another ASX broker in Goldman Sachs. As my Fool colleague James covered last month, Goldman has also recently slapped the miner with a 'buy' rating, alongside a 12-month share price target of $48.40.
Let's see if these brokers' optimism for BHP shares plays out as projected.
