Boom or Bust? Is there any value in BHP Group (NYSE:BBL)?

BHP Group (NYSE:BBL) are valued at $49.28 at the time of writing and have moved -0.92% since the open.  Smart investors often look for value stocks with upside potential.  

Because there are so many stocks to choose from, it may not be feasible for investors to be able to research all of them. Investors may have many different preferred methods for screening stocks, and it can sometimes be easier to focus on a small number of stocks at first. There is no shortage of stock picking ideas that come from various outlets across the globe. Certain stocks tend to become household names simply because of the amount of coverage that they get from the media. There are many unglamorous stocks that might be a good fit for the portfolio. Taking the time to branch out into previously non-researched sectors may give the investor some new ideas for portfolio additions in the future.

Let’s take a quick look at how the price of BHP Group (NYSE:BBL) is currently trading in comparison to some of its simple moving averages. At current levels, shares have been seen trading 0.89% away from the 20-day moving average. The stock has been recently separated from the 50-day moving average by 4.51%. Using a broader approach, the stock has been trading 17.17% off of the 200-day moving average. After the latest check-in, shares are -3.32% off of the 50 day high and 11.72% away from the 50 day low number.

In terms of performance, shares of BHP Group (NYSE:BBL) are 23.44% since the start of 2016. Over the past week, shares are -2.20%. Moving out to look at the previous month performance, the stock is at 5.37%. For the quarter, performance is at 19.29%. During the past six months, BHP Group (NYSE:BBL)’s stock has been 24.03% and 25.88% for the last 12 months.

Once the individual investor has figured out a plan to analyze stocks, they can begin to start building a portfolio. Because not everyone has the same goals, time horizons, and risk appetites, it is hard to provide one answer to the question of how to construct the perfect winning stock portfolio. Although every investor’s goal is typically to beat the market and secure consistent profits, this is no easy accomplishment. Professionals have spent many years studying the ins and outs of the stock market. There are certain strategies that may work better during different market cycles, but it is hard to say with any certainty that they will continue to work in the future. Markets and economic landscapes are constantly changing, and being able to keep up with the changes might involve tweaking strategies that have previously been successful but no longer are.

One of the most basic ideas that goes along with the stock market is buy low and sell high. Although this advice is overly obvious, many new investors will do the exact opposite when trading stocks. Inexperienced investors have the tendency to buy stocks that have been performing the best recently. This may be caused by certain factors such as not looking into the underlying fundamentals or just hoping that the stock will continue to rise. Rookie investors may also make the error of holding onto shares that continue to drop in value. Instead of cutting the loser loose, they hold off with the hope that eventually the stock will at least get back to the breakeven point. 

Analyst Views

Wall Street brokerage firms that regularly cover the stock have provided price targets and recommendations on BHP Group (NYSE:BBL). According to First Call, the consensus price target for the company is $54.30. The consensus recommendation provided by analysts is currently 2.50. This number is based on a scale from 1 to 5. Analysts rating the company a 1 or 2 indicate a Buy recommendation. Analysts rating the company a 4 or 5 indicate a Sell recommendation. Analysts rating the company a 3 indicate a Hold recommendation.