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MP Materials Corp. (MP) Moves 11.3% Higher: Will This Strength Last?

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MP Materials Corp. (MP - Free Report) shares rallied 11.3% in the last trading session to close at $35.72. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.5% loss over the past four weeks.

Shares of MP Materials have been gaining on the back of higher prices for rare earth metals, supported by strong demand and tight supply.  The company reported year over year higher earnings and record revenues in the first-quarter 2022.

The company’s production volume for rare earth oxide improved 10% year over year to 10,828 metric tons, driven by improvement in efficiency of the company’s processing operations, higher mineral recoveries and ore feed rates. Sales volumes of 11,706 metric tons increased 20% year on year on improved production volumes and the timing of shipments.

This company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +113.3%. Revenues are expected to be $124.74 million, up 70.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For MP Materials Corp., the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

MP Materials Corp. belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, Americas Gold and Silver Corporation (USAS - Free Report) , closed the last trading session 2.9% higher at $0.70. Over the past month, USAS has returned -5.8%.

Americas Gold and Silver Corporation's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. Compared to the company's year-ago EPS, this represents a change of +107.7%. Americas Gold and Silver Corporation currently boasts a Zacks Rank of #4 (Sell).


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