USA Rare Earth Inc (NASDAQ:USAR) shares are up on Friday as the company recently announced the addition of two new partners for a mining project in Texas. Here’s what investors need to know.
What Does This Mean For Rare Earth Supply?
USA Rare Earth selected Fluor Corp and WSP Global Inc as its engineering, procurement and construction management partners to advance a project in Sierra Blanca, Texas. The company plans to expedite this project with an accelerated mine plan, aiming for commercial production of heavy rare earth oxides by late 2028.
In addition, the operation of its demonstration plant in Wheat Ridge, Colorado is ongoing, with 2,000 continuous hours expected to conclude by October 2026. The company also intends to conduct confirmatory and geotechnical drilling at Round Top in the first half of 2026 to support mine design and engineering.
Strong Momentum Signals Potential Market Correction
The stock is currently trading 36.5% above its 20-day simple moving average (SMA) and 23.3% above its 100-day SMA, demonstrating strong short-term momentum. Over the past 12 months, shares have increased 20.32% and are currently positioned closer to their 52-week highs than lows.
The RSI is at 70.63, which is considered overbought territory, while the MACD is above its signal line, indicating bullish momentum. The combination of overbought RSI and bullish MACD suggests bearish momentum, signaling caution for traders.
- Key Resistance: $23.00
- Key Support: $20.00
What Analysts Have To Say
Investors are looking ahead to the next earnings report on Feb. 15.
- EPS Estimate: Loss of 7 cents
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $18.00. Recent analyst moves include:
- Canaccord Genuity: Buy (Raises Target to $23.00) (Nov. 7, 2025)
- William Blair: Initiated with Outperform (Oct. 20, 2025)
The Verdict: USA Rare Earth's Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum indicates a strong trend, the absence of value and growth scores suggests caution for investors.
USAR Shares Gain Friday
USAR Price Action: USA Rare Earth shares were up 2.51% at $23.29 at the time of publication on Friday, according to Benzinga Pro data.
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