On the upside, BHP Group Limited (NYSE:BHP) will test short term resistance at around $45.2. On a downside, the share price is likely to find some support, which begins at $44.23. The failure to get near-term support could push it to $43.59. Its 50 day simple moving average (SMA 50) price is $47.16 and its 200-day simple moving average (SMA 200) price is $47.79. The company’s stock currently has a total float of 2.66B shares. Its weekly volatility is hovering around 1.85% and felt 1.81% volatility in price over a month.
BHP stock has been range bound between the range of $43.92 and $43.92 during the whole day. The stock finished Thursday at $44.87. The -2.2% downtrend forced its market value to reach at $119.42B. The price went up as high as $43.92 before retreating. Trading activity significantly improved as the volume at ready counter increased to 5,009,178 shares versus 2,677,860 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,550,200 shares. The stock is now 10.57% above against its bear-market low of $40.58 on December 07, 2017. It has retreated -17.27% since it’s 52-week high of $52.62 reached in July. Now the market price is up 8.36% on the year and down -2.44% YTD.
Wall Street’s most bullish BHP Group Limited (NYSE:BHP) analysts are predicting the share price to blow past $59.39 per share during the next 12 months. The current median share price forecast by them is $51.49, suggesting that the stock could increase 14.75% in that time frame. The average price target of $50.15 calls for a nearly 11.77% increase in the stock price.
It had seen a negative analyst call from JP Morgan, which downgraded the stock from Overweight to Neutral on December 06. Analysts at Investec, shed their positive views on June 15 by lowering it fromBuy to Hold. The stock won favor of JP Morgan analysts who expressed their confidence in it using an upgrade from Neutral to Overweight on June 07. CLSA analysts came out with bearish views on April 19 when the call was made. They think the stock is now Outperform compared to to their prior call for Buy.
When looking at valuations, BHP Group Limited (BHP) has a cheap P/E of 13.39x as compared to industry average of 16.91x. Moreover, it trades for 17.21 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.15x price/book and 2.74x price/sales. Compared to others, BHP Group Limited is in a different league with regards to profitability, having net margins of 8.5%. To put some perspective around this, the industry’s average net margin is -1895.71%. BHP’s ROE is 6.5%, which is also considerably worse than the industry’s ROE of 10.29%. It’s also very liquid in the near term, with a current ratio of 2.5. The stock has a debt/capital of 0.48.
For this quarter, Wall Street analysts forecast revenue in a range of $45.58 billion to $46.54 billion, which should be compared with $0 generated last year. EPS is seen in a range of $1.72 to $4.06, against the $1.8 reported a year ago.