BHP Group Ltd (ASX: BHP) released its operational review for the past financial year this week, and it’s fair to say reaction from analysts has been muted, with the company guiding to a drop in copper production this year.

Are BHP shares fully priced at the moment?

BHP shares are up slightly more than 50% for the past 12 months, so given that strong result, it begs the question, do they have further to run?

The team at Macquarie have run the ruler over the company and come up with a neutral recommendation on the stock, and a share price target we’ll get to shortly.

First, let’s look at what BHP reported this week.

Solid operational results

The company said in a statement to the ASX that it had delivered record iron ore production over the year to the end of June, up 1% to 264.7 million tonnes.

Copper, however, was 3% lower than the previous year at 1.95 million tonnes.

BHP Chief Executive Officer Brandon Craig said it was a solid result.

He added:

For the second consecutive year, we produced around 2 Mt of copper and delivered record iron ore production, demonstrating the power of a disciplined operating system and world-class assets. We achieved this against a backdrop of stronger realised prices for both copper and iron ore, with copper prices around 35 per cent higher than a year ago. Cost control was particularly strong, with every asset expected to be within unit cost guidance despite headwinds from inflation, higher diesel prices and global supply chain disruptions.

While Mr Craig said the company had several growth projects underway, BHP is actually guiding to lower copper output this year, with a forecast of 1,650,000 to 1,800,000 tonnes of copper.

Iron ore is expected to stay largely flat at 260 to 272 million tonnes.

Copper output has been impacted by a conveyor belt failure at the Carrapateena mine, impacting output at the company’s South Australian operations for up to eight weeks.

Let’s see what the analysts think

The Macquarie team said in their note to clients that much of BHP’s value proposition was built on copper growth, and that South Australia was a key part of that.

They applauded the company’s record iron result however, in what they said had been a tough year.

But Macquarie said with the risk of strikes looming and significant maintenance work scheduled, they expected it to be a “holding year” for the division.

Macquarie has a 12-month price target of $55 on BHP shares compared to $59.14 at the time of writing. They are also predicting the dividend yield to stay steady on 3.4%.

The post Does Macquarie rate BHP shares a buy, hold or sell right now? appeared first on The Motley Fool Australia.

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• Up almost 50%, is it too late to buy BHP shares?

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

A portfolio does not need dozens of holdings to cover a lot of ground.

With three carefully chosen investments, I think an investor could gain exposure to global growth, dependable infrastructure, and a business with substantial room to expand.

The key is giving each holding a clear job.

Start with global quality

I would make VanEck MSCI International Quality ETF (ASX: QUAL) the largest holding.

This exchange-traded fund (ETF) provides exposure to international companies selected using measures such as profitability, balance sheet strength, and earnings stability.

I like that approach because the global share market contains thousands of businesses, but they are not all equally attractive. A quality filter can direct more of the portfolio towards companies that have already shown an ability to generate strong returns without relying heavily on debt.

These businesses may sell software, medicines, consumer products, industrial equipment, or financial services. What connects them is the financial strength that can support continued investment through changing economic conditions.

International shares also give Australian investors access to industries and business models that are less prominent on the ASX.

I would expect this holding to do most of the long-term compounding.

Add dependable infrastructure

The second investment would be APA Group (ASX: APA).

APA owns and operates energy infrastructure, including pipelines and other assets that help move and store energy around Australia.

I think infrastructure can bring a different rhythm to a portfolio. Demand is linked to essential services, while many assets are supported by long-term agreements or regulated arrangements.

APA also pays dividends, which could provide some income while the wider portfolio continues growing.

The energy system is changing, and APA will need to invest carefully as Australia moves towards a different mix of generation and storage. Debt, interest rates, regulation, and project returns all deserve attention.

Even so, I like the idea of owning assets that remain deeply connected to how homes and businesses receive energy.

Include a long-term growth share

The final investment would be Xero Ltd (ASX: XRO).

Xero has developed accounting software that sits close to the daily financial activity of small businesses. Customers can use the platform for invoicing, payroll, payments, reporting, tax, and cash flow management.

That position gives Xero room to become more valuable to each customer over time.

The company can add services, improve automation, and use data to help business owners make better decisions. Its opportunity in the United States also leaves plenty of space for expansion if execution remains strong.

Xero shares can be volatile, and investors are often asked to pay a high valuation for future growth. I would therefore keep the allocation smaller than the global ETF holding.

For a long investment horizon, I think the company has the potential to become a much larger financial platform.

How I would split the money

I would put around 50% of the portfolio into the QUAL ETF, 25% into APA Group, and 25% into Xero shares.

That split would place most of the money in a diversified global holding while still leaving enough exposure to income and company-specific growth.

The exact percentages could change with an investor’s age, income needs, and tolerance for volatility. Someone closer to retirement may prefer a larger infrastructure allocation, while a younger investor may lean further towards growth.

Foolish Takeaway

A three-investment portfolio places more responsibility on every holding, so I would choose each one carefully and resist the temptation to keep adding shares without a clear reason.

This structure would give me access to established global businesses, essential Australian assets, and a company still building towards a much larger opportunity.

It would remain simple enough to follow, while offering several ways for wealth to grow over the years ahead.

The post How I would build an ASX portfolio with just 3 investments appeared first on The Motley Fool Australia.

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

It was a bit of a sour end to the trading week for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Friday. After a bumpy trading week that saw the markets swing from gains to losses, investors ended up siding with the pessimists over today’s session.

After keeping to red territory all day, the ASX 200 ended up closing 0.5% lower. That leaves the index at 8,796.7 points as we head into the weekend.

This rough day for the Australian markets followed a similar session on Wall Street overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) was not in a good mood, dropping 0.2% lower.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was punished even harder, falling a nasty 1.47%.

But let’s return to the local boards now and take a closer look at what was happening with the various ASX sectors this Friday.

Winners and losers

No one should be surprised to see that there were more losers than winners today.

Leading said losers were gold stocks. The All Ordinaries Gold Index (ASX: XGD) was slammed this session, crashing 4.95%.

Broader mining shares were also slammed, with the S&P/ASX 200 Materials Index (ASX: XMJ) tanking 2.91%.

Tech stocks sank hard as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) cratered 1.6%.

Next on the red list were healthcare shares, illustrated by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 0.34% dive.

Our final losers this Friday were financial stocks. The S&P/ASX 200 Financials Index (ASX: XFJ) lifted 0.1% by the closing bell.

Let’s turn to the green sectors now. It was utilities shares that fronted the pack, with the S&P/ASX 200 Utilities Index (ASX: XUJ) surging up 1.77%.

Energy stocks ran hot, too. The S&P/ASX 200 Energy Index (ASX: XEJ) soared 1.66% higher this Friday.

Communications shares were also in demand, as you can see from the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 1.62% lift.

Consumer staples stocks weren’t left out either. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) bounced up 1.06% today.

Real estate investment trusts (REITs) came next, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) seeing its value spike 1.02%.

After REITs, we had industrial shares. The S&P/ASX 200 Industrials Index (ASX: XNJ) enjoyed a 0.65% improvement this session.

Last and least, consumer discretionary stocks just stuck the landing, evidenced by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 0.48% jump.

Top 10 ASX 200 shares countdown

Today’s top stock was once again the financial services company AMP Ltd (ASX: AMP). AMP shares rocketed another 6.32% today to close at $2.02 each.

This seems to be a continuation of the goodwill we saw yesterday following the earnings update that was released.

Here’s the rest of today’s best: 

ASX-listed company	Share price	Price change
AMP Ltd (ASX: AMP)	$2.02	6.32%
Brambles Ltd (ASX: BXB)	$19.44	3.46%
Woodside Energy Group Ltd (ASX: WDS)	$30.46	3.29%
Coles Group Ltd (ASX: COL)	$23.21	2.88%
Amcor plc (ASX: AMC)	$63.77	2.84%
Telstra Group Ltd (ASX: TLS)	$5.04	2.65%
Bega Cheese Ltd (ASX: BGA)	$6.10	2.52%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$17.62	2.50%
Ingenia Communities Ltd (ASX: INA)	$4.29	2.39%
Generation Development Group Ltd (ASX: GDG)	$3.56	2.30%

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has positions in and has recommended Amcor Plc and Telstra Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.