|
|
|
|
|||||
|
|
|
New: Instantly spot drawdowns, dips, insider moves, and breakout themes across Maps and Screener.
USA Rare Earth is a mining company focused on building a domestic supply chain for rare-earth magnets.
The company's flagship project, the Round Top deposit in Texas, is rich in heavy rare-earth elements.
When you think of a U.S.-based rare-earth miner -- if you've ever found yourself thinking such a thing at all -- MP Materials (NYSE: MP) is probably the first mining stock that comes to mind. And while MP Materials certainly deserves its popularity -- it did, after all, ink a landmark $400 million deal with the Department of Defense -- USA Rare Earth (NASDAQ: USAR) might be the better growth opportunity right now.
Image source: Getty Images.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Like MP, USA Rare Earth is trying to build a domestic supply of rare-earth metals, with the end goal of manufacturing high-performance magnets.
Unlike MP, whose mining output is mostly light rare-earth elements, USA Rare Earth controls a deposit (the Round Top deposit in Texas) that is much richer in heavy earths, such as dysprosium and terbium. This could mean that USA Rare Earth fills a critical gap in the rare-earth supply chain.
That said, USA Rare Earth is an early-stage development company. It doesn't generate meaningful revenue right now, and it likely won't for several years.
USAR Revenue Estimates for Current Fiscal Year data by YCharts
The company itself predicts that it will finish its first magnet factory in early 2026, while mining at Round Top will likely start in 2028.
As a pre-revenue company with no track record of mining, investors should expect turbulence as the company works to scale its mining and manufacturing capabilities. The stock's market cap is already about $2.5 billion, despite no revenue, and yet if it can build its mine-to-magnet supply chain as it plans, that valuation could look small in retrospect.
A $1,000 investment in the company today isn't without risks, and investors should weigh those risks carefully. But given the importance of high-performance magnets in the U.S. -- which are found in many everyday electronics and devices -- the company seems well-positioned to grow dramatically if it can scale its magnet production commercially.
Before you buy stock in USA Rare Earth, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 25, 2026.
Steven Porrello has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
| 3 hours | |
| 7 hours | |
| 7 hours | |
| Jan-24 | |
| Jan-24 | |
| Jan-24 | |
| Jan-23 | |
| Jan-23 | |
| Jan-23 | |
| Jan-23 | |
| Jan-22 | |
| Jan-22 | |
| Jan-22 | |
| Jan-22 | |
| Jan-22 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite