The BHP share price is sliding 5% today. Is it time to dig in?

The BHP Group Ltd (ASX: BHP) share price is in the red today, but could it be a buy in the future?

BHP shares are currently swapping hands at $44.74, a 3.18% fall. Earlier in the session, the BHP share price dropped as low as $44.11, or 4.5% lower.

For perspective, the S&P/ASX 200 Index (ASX: XJO) is 1.47% in the red at the time of writing.

Let's take a look at what is happening to the BHP share price.

What's the outlook for BHP?

BHP is not the only ASX mining giant dropping today. The Fortescue Metals Group Ltd (ASX: FMG) share price is 3.41% in the red today, while Rio Tinto Ltd (ASX: RIO) is descending 3.64%. Iron ore prices have fallen nearly 6% to US$128 per tonne, Trading Economics data shows.

However, Macquarie is predicting BHP shares could be ready for re-rating after the company's petroleum demerger. In comments quoted by The Australian, Macquarie associate director Hayden Bairstow said:

We believe BHP's EV/EBITDA multiples could expand after the petroleum demerger.

Further, we believe there is potential for BHP to command a re-rating given the portfolio would be oil and gas free post the demerger, a hurdle that has suppressed interest in BHP due to strict ESG mandates.

BHP has agreed to offload its petroleum business to Woodside Petroleum Ltd in exchange for Woodside shares. This is earmarked for completion by 1 June, subject to the approval of Woodside shareholders at a meeting on 19 May.

Analysts at Morgans are also optimistic about the BHP share price, as my Foolish colleague James reported. The company has an add rating on BHP shares and a $54.30 price target.

Morgans analysts said:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. 

BHP share price snapshot

The BHP share price has descended 13% in the past year while it has jumped more than 8% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has lost 2% over the past year.

BHP has a market capitalisation of about $228 billion based on the current share price.