Searching for a Leading Momentum Stock? Here's Why MP Materials Corp. (MP) is an Excellent Option
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 02 2025
0mins
Should l Buy MP?
Source: NASDAQ.COM
Momentum Investing Overview: Momentum investing focuses on capitalizing on a stock's recent price trends, with the aim of buying high and selling higher. MP Materials Corp. currently holds a Momentum Style Score of A and a Zacks Rank of #2 (Buy), indicating strong potential for profitable trades.
Performance Metrics for MP Materials: MP has shown impressive price increases, with a 156.92% rise over the past quarter and 451.47% over the last year, significantly outperforming the S&P 500. Additionally, positive earnings estimate revisions further support its strong momentum outlook.
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Analyst Views on MP
Wall Street analysts forecast MP stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 56.950
Low
55.27
Averages
76.13
High
94.00
Current: 56.950
Low
55.27
Averages
76.13
High
94.00
About MP
MP Materials Corp. produces specialty materials that are vital inputs for electrification and other advanced technologies. The Company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility (Mountain Pass) located in California. It is also developing a rare earth metal, alloy and magnet manufacturing facility in Fort Worth, Texas (Independence Facility). The Company’s segments include Materials and Magnetics. The Materials segment operates Mountain Pass, which produces refined rare earth products as well as rare earth concentrate and related products. The Materials segment primarily generates revenue from sales of rare earth concentrate, primarily sold for further distribution to a single, principal customer in China, and sales of neodymium-praseodymium (NdPr) oxide and metal, primarily sold to customers in Japan, South Korea, and broader Asia. The Magnetics segment operates the Independence Facility, where it produces magnetic precursor products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Japan's $550 Billion Investment Reshapes U.S. Energy Market
- Investment Wave: Japan has initiated its $550 billion investment commitment, focusing on U.S. LNG exports, power generation, and critical minerals, which is expected to revitalize the American energy and industrial markets.
- LNG Exporters Benefit: Trump highlighted a new LNG facility in Texas on social media, aimed at expanding export capacity and further solidifying America's dominance in the global energy market, drawing increased investor attention.
- GE Vernova Growth Potential: As a specialist in power generation equipment and energy infrastructure, GE Vernova stands to benefit from the rising global demand for reliable gas-based electricity generation, enhancing its market share.
- Critical Minerals in Focus: Critical minerals are essential for defense systems and advanced manufacturing, and with foreign capital flowing into U.S. strategic industries, bullish sentiment towards LNG exporters and rare earth producers continues to grow.
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U.S. Advances Critical Minerals Price Floor System
- Market Stabilization Mechanism: U.S. Under Secretary of State Jacob Helberg stated that the new pricing mechanism aims to stabilize markets by unlocking private investment, expected to roll out through the Pax Silica program, although specific implementation details remain unclear.
- Strengthened International Cooperation: The U.S. has reached agreements with the European Union, Japan, and Mexico to introduce price floor policies to address supply chain vulnerabilities, demonstrating U.S. leadership in global critical mineral supply chains.
- Positive Stock Market Reaction: Following the announcement, rare earth mining companies such as United States Antimony Corp (UAMY), MP Materials (MP), and USA Rare Earth Inc. (USAR) gained over 2% in pre-market trading, reflecting market optimism regarding the new policy.
- Divergent Investor Sentiment: Despite the stock price increase, retail investor sentiment on Stocktwits leaned bearish, indicating cautious attitudes towards long-term prospects, although some users expressed optimism about the sector's future.
See More
U.S. Promotes Critical Minerals Price Floor System
- Price Floor System: The U.S. has developed a critical minerals price floor system, aiming to reduce dependence on China while engaging with over 50 allied nations to enhance national security.
- Investment Incentive: Jacob Helberg, Under Secretary of State for Economic Affairs, stated that the introduction of this system will unlock key pricing mechanisms for private investment, enhancing competitiveness for non-Chinese firms in the market.
- Market Protection: Industry participants believe that price floors will effectively shield Western companies from market flooding by China, preventing profit erosion and ensuring stable supply of critical minerals.
- Strategic Importance: This initiative represents the latest progress in U.S. and allied efforts, reflecting the strategic significance of reshaping the critical minerals market within global supply chains to bolster economic resilience in Western nations.
See More
Competition Intensifies in U.S. Rare Earth Supply Chain
- Market Leadership: MP Materials owns the Mountain Pass mine in California, the only active rare-earth metals mine in the U.S., and is set to boost domestic magnet output to 10,000 metric tons through its Fort Worth Independence factory and the upcoming '10X Facility', thereby solidifying its market leadership.
- Financial Backing: In July 2025, MP Materials received a $400 million investment from the Department of Defense, which will fund the construction of its second magnet factory and includes a 100% purchase agreement for future production, significantly enhancing its financial stability and competitive edge.
- Future Potential: USA Rare Earth controls the Round Top deposit, one of the largest heavy rare-earth element deposits in the U.S., and while it is not operational yet, it aims for commercial production by 2028, potentially offering significant upside for investors if successful.
- Policy Impact: The Trump administration announced a $1.6 billion funding package for USA Rare Earth in early 2026 to support its mine development and the construction of its first magnet factory in Oklahoma, which will help reduce U.S. reliance on Chinese rare earths.
See More
MP Materials Positioned for Growth Amid Rare Earth Political Landscape
- Government-Backed Price Floor: MP Materials has established a $110/kg price floor for NdPr through a Department of Defense agreement effective October 1, providing robust protection against volatility in the commodity market and ensuring stable profitability.
- Profitability Outlook: JPMorgan analysts expect MP Materials' EBITDA to turn positive in Q4 as DoD top-off payments commence, despite free cash flow pressures from capital expenditures and inventory build, with a long-term EBITDA floor projected at $650 million once production ramps up.
- Strategic Growth Potential: While the near-term market may appear quiet, investors are focused on MP's midstream NdPr production and the initial commercial magnet ramp targeted for the second half of 2026, laying the groundwork for future growth.
- Structural Importance of Rare Earth Security: Analysts emphasize that rare earth security is not cyclical but structural, indicating that MP Materials is not merely mining but building a strategic franchise, with significant growth potential driven by government price support and scaling magnet production.
See More
Rising Importance of Rare Earth Materials in the U.S.
- Market Dynamics: MP Materials (NYSE: MP) has seen its stock rise by 14.6% in 2026, although it has retreated from a 16.3% increase at the end of January, indicating ongoing volatility in the rare earth sector and investor scrutiny.
- Government Support Agreement: USA Rare Earth secured $3.1 billion in government funding and private investment through an agreement with the U.S. government, which derisks its business plan and positively influences MP Materials' market outlook.
- Price Floor Risks: Unlike MP Materials, USA Rare Earth did not receive any price-floor commitments from the government, raising market concerns and leading to a sell-off in MP Materials' stock as investors reacted to uncertainties about future developments.
- Strategic Partnership Outlook: MP Materials signed a $500 million supply agreement with Apple, underscoring its critical role in the U.S. rare earth supply chain, and is expected to continue receiving government and market support despite facing political risks.
See More
Japan's $550 Billion Investment Reshapes U.S. Energy Market
- Investment Wave: Japan has initiated its $550 billion investment commitment, focusing on U.S. LNG exports, power generation, and critical minerals, which is expected to revitalize the American energy and industrial markets.
- LNG Exporters Benefit: Trump highlighted a new LNG facility in Texas on social media, aimed at expanding export capacity and further solidifying America's dominance in the global energy market, drawing increased investor attention.
- GE Vernova Growth Potential: As a specialist in power generation equipment and energy infrastructure, GE Vernova stands to benefit from the rising global demand for reliable gas-based electricity generation, enhancing its market share.
- Critical Minerals in Focus: Critical minerals are essential for defense systems and advanced manufacturing, and with foreign capital flowing into U.S. strategic industries, bullish sentiment towards LNG exporters and rare earth producers continues to grow.
See More
U.S. Advances Critical Minerals Price Floor System
- Market Stabilization Mechanism: U.S. Under Secretary of State Jacob Helberg stated that the new pricing mechanism aims to stabilize markets by unlocking private investment, expected to roll out through the Pax Silica program, although specific implementation details remain unclear.
- Strengthened International Cooperation: The U.S. has reached agreements with the European Union, Japan, and Mexico to introduce price floor policies to address supply chain vulnerabilities, demonstrating U.S. leadership in global critical mineral supply chains.
- Positive Stock Market Reaction: Following the announcement, rare earth mining companies such as United States Antimony Corp (UAMY), MP Materials (MP), and USA Rare Earth Inc. (USAR) gained over 2% in pre-market trading, reflecting market optimism regarding the new policy.
- Divergent Investor Sentiment: Despite the stock price increase, retail investor sentiment on Stocktwits leaned bearish, indicating cautious attitudes towards long-term prospects, although some users expressed optimism about the sector's future.
See More
U.S. Promotes Critical Minerals Price Floor System
- Price Floor System: The U.S. has developed a critical minerals price floor system, aiming to reduce dependence on China while engaging with over 50 allied nations to enhance national security.
- Investment Incentive: Jacob Helberg, Under Secretary of State for Economic Affairs, stated that the introduction of this system will unlock key pricing mechanisms for private investment, enhancing competitiveness for non-Chinese firms in the market.
- Market Protection: Industry participants believe that price floors will effectively shield Western companies from market flooding by China, preventing profit erosion and ensuring stable supply of critical minerals.
- Strategic Importance: This initiative represents the latest progress in U.S. and allied efforts, reflecting the strategic significance of reshaping the critical minerals market within global supply chains to bolster economic resilience in Western nations.
See More
Competition Intensifies in U.S. Rare Earth Supply Chain
- Market Leadership: MP Materials owns the Mountain Pass mine in California, the only active rare-earth metals mine in the U.S., and is set to boost domestic magnet output to 10,000 metric tons through its Fort Worth Independence factory and the upcoming '10X Facility', thereby solidifying its market leadership.
- Financial Backing: In July 2025, MP Materials received a $400 million investment from the Department of Defense, which will fund the construction of its second magnet factory and includes a 100% purchase agreement for future production, significantly enhancing its financial stability and competitive edge.
- Future Potential: USA Rare Earth controls the Round Top deposit, one of the largest heavy rare-earth element deposits in the U.S., and while it is not operational yet, it aims for commercial production by 2028, potentially offering significant upside for investors if successful.
- Policy Impact: The Trump administration announced a $1.6 billion funding package for USA Rare Earth in early 2026 to support its mine development and the construction of its first magnet factory in Oklahoma, which will help reduce U.S. reliance on Chinese rare earths.
See More
MP Materials Positioned for Growth Amid Rare Earth Political Landscape
- Government-Backed Price Floor: MP Materials has established a $110/kg price floor for NdPr through a Department of Defense agreement effective October 1, providing robust protection against volatility in the commodity market and ensuring stable profitability.
- Profitability Outlook: JPMorgan analysts expect MP Materials' EBITDA to turn positive in Q4 as DoD top-off payments commence, despite free cash flow pressures from capital expenditures and inventory build, with a long-term EBITDA floor projected at $650 million once production ramps up.
- Strategic Growth Potential: While the near-term market may appear quiet, investors are focused on MP's midstream NdPr production and the initial commercial magnet ramp targeted for the second half of 2026, laying the groundwork for future growth.
- Structural Importance of Rare Earth Security: Analysts emphasize that rare earth security is not cyclical but structural, indicating that MP Materials is not merely mining but building a strategic franchise, with significant growth potential driven by government price support and scaling magnet production.
See More
Rising Importance of Rare Earth Materials in the U.S.
- Market Dynamics: MP Materials (NYSE: MP) has seen its stock rise by 14.6% in 2026, although it has retreated from a 16.3% increase at the end of January, indicating ongoing volatility in the rare earth sector and investor scrutiny.
- Government Support Agreement: USA Rare Earth secured $3.1 billion in government funding and private investment through an agreement with the U.S. government, which derisks its business plan and positively influences MP Materials' market outlook.
- Price Floor Risks: Unlike MP Materials, USA Rare Earth did not receive any price-floor commitments from the government, raising market concerns and leading to a sell-off in MP Materials' stock as investors reacted to uncertainties about future developments.
- Strategic Partnership Outlook: MP Materials signed a $500 million supply agreement with Apple, underscoring its critical role in the U.S. rare earth supply chain, and is expected to continue receiving government and market support despite facing political risks.
See More
