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.
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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.
