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BHPBHP Group LimitedBuy Wait6.2·$86.78-0.52%
Buy WaitModerate Confidence
Investment thesis

BHP is a genuinely high-quality industrial compounder with a wide competitive moat, best-in-class margins, and a near-perfect balance-sheet health score, but the stock has moved past its resistance target with a negative risk/reward geometry, consecutive earnings misses introduce near-term uncertainty, and the reward for entering at current prices is far thinner than the quality of the underlying business would suggest.

Thesis pillars

  • Above Target Negative Risk RewardStable
  • Breakout Momentum At Stretched PriceDeteriorating
  • Wide Moat Compounder QualityStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

BHP Group Limited (BHP) Stock Analysis

Breakout setup

Buy WaitGrowthQualityModerate Confidence

Basic Materials · Other Industrial Metals & Mining

Earnings in 2 days (2026-08-17). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $80.25. BUY gates pass at $86.78, but analyst target reached - limited upside remaining argues for a more patient entry. Engine's entry $80.25 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum.

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It also engages in the mining of copper,... Read more

$86.78-26.2% A.UpsideScore 6.2/10#5 of 33 Other Industrial Metals & Mining
QualityF-score9 / 9FCF yield3.69%
IncomeYield3.05%(5y avg 7.05%)Payout54.64%sustainable
Entry $80.25(Default 5pct Sticky)Stop $75.49Target $89.80(resistance)A.R:R -3.3:1
Analyst target$73.64-15.1%7 analysts
$89.80our TP
$86.78price
$73.64mean
$60
$91

Wait for pullback to $80.25. BUY gates pass at $86.78, but analyst target reached - limited upside remaining argues for a more patient entry. Engine's entry $80.25 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Earnings in 2 days. Wait until post-earnings. Score 6.2/10, moderate confidence.

Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 2d<=7d. Suitability: moderate.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Mon, Aug 17, 20262d to earnings· next earnings call

Thesis

Rewards
High-quality business
Positive insider activity
Wide economic moat
Risks
Analyst target reached - limited upside remaining

Key Metrics

P/E (TTM)21.6
P/E (Fwd)17.8
Mkt Cap$220.5B
EV/EBITDA9.2
Profit Mgn19.0%
ROE24.7%
Rev Growth10.8%
Beta0.84
Dividend3.05%
Rating analysts25

Quality Signals

Piotroski F9/9MoatWideCompounder

Options Flow

P/C0.50bullish
IV51%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Earnings History
3.3
Dividend Safety
4.8
Erm
5.0
Earnings Timing
5.0
Earnings concerns: 2B/2MEarnings in 2 daysDividend: 3.0%
GatesA.R:R -3.3=NEGATIVEEARNINGS PROXIMITY 2d<=7dMomentum 5.7>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
57 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $79.89Resistance $91.63

Price Targets

$75
$80
$90
A.Upside-26.2%
A.R:R-3.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-26.2% upside)
! Earnings in 2 days - binary event risk
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-17 (2d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BHP stock a buy right now?

Wait for pullback to $80.25. BUY gates pass at $86.78, but analyst target reached - limited upside remaining argues for a more patient entry. Engine's entry $80.25 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Earnings in 2 days. Wait until post-earnings. Target $89.80 (+3.5%), stop $75.49 (−15.0%), A.R:R -3.3:1. Score 6.2/10, moderate confidence.

What is the BHP stock price target?

Take-profit target: $89.80 (-26.2% upside). Target $89.80 (+3.5%), stop $75.49 (−15.0%), A.R:R -3.3:1. Stop-loss: $75.49.

What are the risks of investing in BHP?

Analyst target reached - limited upside remaining.

Is BHP overvalued or undervalued?

BHP Group Limited trades at a P/E of 21.6 (forward 17.8). TrendMatrix value score: 6.5/10. Verdict: Buy (Wait for Entry).

What do analysts say about BHP?

25 analysts cover BHP with a consensus score of 3.4/5. Average price target: $74.

What does BHP Group Limited do?BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, rest of Asia,...

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It also engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. In addition, the company is involved in the mining, smelting, and refining of nickel, as well as potash development activities. Further, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. BHP Group Limited was founded in 1851 and is headquartered in Melbourne, Australia.

Related stocks: RIO (Rio Tinto Plc) · VALE (VALE S.A.) · GFI (Gold Fields Limited) · KGC (Kinross Gold Corporation) · AU (AngloGold Ashanti PLC)
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