Latest news with #USA Rare Earth
Yahoo
2 days ago
- Business
- Yahoo
Why USA Rare Earth Stock Is Shooting Higher Today
USA Rare Earth is developing a rare earth magnet production facility in Oklahoma. Shares of USA Rare Earth soared last week, and they continue to do so today. Since it doesn't generate revenue, USA Rare Earth is a highly speculative investment. 10 stocks we like better than Usa Rare Earth › Rare earth stocks are shining brightly on investors' radars these days. Shares of USA Rare Earth (NASDAQ: USAR), for example, climbed 11.4% last week, and they're continuing to soar higher today. As of 11:17 a.m ET, shares of USA Rare Earth are up 11.6%. While USA Rare Earth hasn't reported any news today that would explain why shares are climbing higher, it's unsurprising that bulls are racing to buy the stock. It's possible that investors are bidding the stock higher on the speculation that it will ink a similar agreement to the one that MP Materials announced last week with the U.S. government. What's good for the goose is good for the gander, and since there aren't numerous rare earths producers located in the United States, investors are likely surmising that USA Rare Earths will either partner with the U.S. government, or there will be another catalyst that will expedite the company's growth. USA Rare Earth is developing a rare earth magnet manufacturing facility in Oklahoma, where it plans to begin commercial operations in the first half of 2026. In light of the political enthusiasm for shoring up the nation's supply of rare earths from domestic sources, it makes sense that investors are keenly attentive to USA Rare Earth stock. It's important for potential investors to recognize, however, that the company is still in the pre-revenue phase of its development, making it a highly speculative investment. Therefore, those who are less interested in higher-risk investments but want rare earth exposure would be better served considering MP Materials at this point. Before you buy stock in Usa Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Usa Rare Earth wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Why USA Rare Earth Stock Is Shooting Higher Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Why USA Rare Earth Stock Soared This Week
The Department of Defense's $400 million investment in MP Materials set off a wave of enthusiasm across the industry. The government's move aims to boost domestic rare earth production, which is currently dominated by China. Unlike MP Materials, which already operates an active mine and generates revenue, USA Rare Earth is pre-revenue with negative shareholder equity. 10 stocks we like better than Usa Rare Earth › Shares of USA Rare Earth (NASDAQ: USAR) jumped this week, up from last Thursday's close at 1 p.m. ET for the Fourth of July holiday by 10.4% as of 1:30 p.m. ET Friday. The rise came as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq-100 both gained 0.6%. USA Rare Earth stock jumped -- alongside most of the critical mining industry -- after MP Materials announced yesterday it had inked a major deal with the Department of Defense (DoD). The Trump administration, which has been considering direct investments in companies that mine materials essential to U.S. national security, pulled the trigger, taking a $400 million stake in rare earth mining company MP Materials. Rare earth materials are essential in technologies at the core of many key weapon systems, and at present, the vast majority of them are mined in China. MP was chosen because it owns the only operational rare earth mine in the U.S. Now its largest shareholder is the Department of Defense, which took a more than 15% stake, almost twice that of the next largest shareholder, CEO James Litinsky. Miners and refiners across the industry saw their stock boosted by the news in hopes that more deals like it would be coming. There are no guarantees that the Pentagon will follow with more deals such as this, and even if it does, there's certainly no guarantee that USA Rare Earth would be selected. Investors are running up the stock on pure speculation, which smart investors should always be wary of. And while on its face, the two companies may appear similar, MP Materials has an active mine and brought in over $60 million in revenue last quarter. USA Rare Earth has no sales and negative shareholder equity, as it is still building out its operations. You should only consider USA Rare Earth stock if you understand this is a high-risk, pre-revenue company. Before you buy stock in Usa Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Usa Rare Earth wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Why USA Rare Earth Stock Soared This Week was originally published by The Motley Fool
