BHP share price dips following rough night on Wall Street

The BHP Group Ltd (ASX: BHP) share price is out of form on Tuesday.

In morning trade, the mining giant’s shares are down 0.4% to $38.90.

This compares unfavourably to the ASX 200 index, which is up 0.5% this morning.

Why is the BHP share price underperforming?

The BHP share price has come under pressure today following broad weakness in the materials sector.

This follows a poor night of trade for materials stocks, such as BHP’s NYSE listed shares, on Wall Street on Monday. This was driven by a pullback in the price of a range of commodities, including iron ore, amid concerns over the global demand outlook.

Here’s how other materials shares are performing on the ASX 200 today:

• The Fortescue Metals Group Limited (ASX: FMG) share price is down 1.5%
• The OZ Minerals Limited (ASX: OZL) share price is down 1.5%
• The Rio Tinto Limited (ASX: RIO) share price is down 0.6%
• The South32 Ltd (ASX: S32) share price is down 3%

Is this a buying opportunity?

Based on what brokers are saying, this could be a buying opportunity for investors.

For example, Morgans has an add rating and $47.00 price target on its shares and Goldman Sachs has a buy rating and $42.50 price target on them.

Based on the current BHP share price, this implies potential upside of 21% and 9%, respectively, over the next 12 months.

In addition, sweetening the deal further, both brokers are forecasting big dividend yields in the coming years.

The post BHP share price dips following rough night on Wall Street appeared first on The Motley Fool Australia.

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More reading

• Why these 2 ASX 200 dividend shares are ‘of particular interest’: fund manager
• Why is the Fortescue share price surging today?
• Why is the BHP share price leaping 4% on Monday?
• ASX dividend shares or distribution shares? Is there even a difference?
• Brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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