MP Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
MP Materials Corp is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The company's strategic importance in the rare earth market, government-backed contracts, and recent funding from the Department of Defense provide strong long-term growth potential. Despite mixed technical indicators and a recent revenue decline, the stock's valuation and potential upside make it a compelling investment opportunity.
The MACD histogram is negative (-0.605) but contracting, indicating potential stabilization. RSI is neutral at 44.966, and moving averages are converging, suggesting no clear trend. Key support levels are at $55.684 and $53.487, with resistance at $59.24 and $62.797. The stock is trading near support levels, which could present a good entry point.
U.S. government-backed contracts and funding from the Department of Defense.
Expansion of rare earth magnet production.
U.S. initiatives to stabilize critical mineral markets and reduce dependence on China.
Positive sentiment from analysts, with JPMorgan and Morgan Stanley maintaining Overweight ratings and price targets above the current price.
Revenue dropped by 14.90% YoY in Q3
Mixed technical indicators with no clear upward trend.
Uncertainty around China's rare earth policies and their impact on global markets.
In Q3 2025, revenue declined by 14.90% YoY to $53.55M, but net income improved significantly, up 63.74% YoY to -$41.78M. EPS increased by 50% to -$0.24, and gross margin improved by 49.63% to -32.53%. Despite revenue challenges, the company shows signs of improving profitability.
Analysts maintain a positive outlook on MP Materials. JPMorgan raised the price target to $76, citing unmatched investment potential and government-backed earnings visibility. Morgan Stanley upgraded the stock to Overweight, highlighting its strategic importance in reducing U.S. dependency on China's rare earth supply chain. BMO Capital also upgraded the stock, emphasizing its attractive valuation and premium multiple.
