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USA Rare Earth Inc (USAR) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has secured significant government funding and analysts have raised price targets, the stock's technical indicators are weak, and financial performance remains negative. The lack of clear proprietary trading signals further supports a cautious approach. Holding the stock or waiting for better entry points is recommended.
The MACD is negative and expanding, indicating bearish momentum. RSI is neutral at 37.96, and moving averages are converging, suggesting no clear trend. The stock is trading near its support level (S1: 19.415), with resistance levels at R1: 25.275 and R2: 27.085.

Secured $1.6 billion government funding and $1.5 billion PIPE financing, reducing funding risks.
Analysts have significantly raised price targets, with some projecting up to $
U.S. government support for domestic rare-earth production could drive long-term growth.
Recent 12.95% drop in share price despite funding announcements.
No price-floor commitments or profitability guarantees in government agreements.
Weak technical indicators and lack of immediate trading signals.
In Q3 2025, revenue remained at $0 with no YoY growth. Net income improved significantly YoY but remains negative at -$156.68 million. EPS increased to -1.53, showing improvement but still negative. Gross margin remains at 0%.
Analysts are optimistic, with multiple firms raising price targets significantly. Cantor Fitzgerald raised the target to $35, Benchmark to $45, Canaccord to $33, and Roth Capital to $35. Analysts highlight reduced funding risks and potential for $1.2 billion EBITDA by 2030.