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3 Rare Earth Stocks to Watch as USAR Rallies on Washington Support
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Key Takeaways
USAR shares rose 7.9% after a non-binding CHIPS Act deal outlined $1.6B in funding, loans, equity and warrants
Washington signaled momentum on tax credits, funding and support to strengthen U.S. rare earth supply chains.
CDE, IDR and IPX gained attention as policy support improved project economics for domestic miners.
U.S. rare earth and critical miner stocks rallied on Jan. 26 as renewed discussion in Washington around expanding federal support for domestic supply chains boosted investor sentiment across the sector. The move reflected growing expectations that government policy could accelerate the development of U.S.-based sources for materials considered vital to economic and national security. As a result, stocks like Coeur Mining, Inc. (CDE - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and IperionX Limited (IPX - Free Report) come into focus.
The day’s rally was triggered by the U.S. government, as it took a major step to bolster domestic rare earth and critical mineral supply chains. Through the Commerce Department’s CHIPS Act program, it signed a non-binding deal to provide about $1.6 billion in funding and loans to USA Rare Earth, Inc. (USAR - Free Report) , including roughly $277 million in grants and $1.3 billion in loans, in exchange for an equity stake and warrants. USAR’s shares jumped 7.9% on the development.
Rare earths and other critical minerals, including lithium, nickel, cobalt and graphite, are essential for electric vehicles, renewable energy systems, advanced electronics and military applications. At present, the U.S. relies heavily on foreign suppliers for many of these materials, a vulnerability that has been a persistent concern among policymakers. Recent comments from Washington suggested increased momentum behind incentives designed to strengthen domestic mining, processing and refining capabilities.
Investors interpreted the policy discussion as a sign that expanded tax credits, direct funding and regulatory support could be forthcoming. Such measures would improve project economics and shorten development timelines for U.S. producers, making the sector more attractive from a long-term investment perspective. Shares of several companies involved in rare earth production and critical mineral exploration posted notable gains during the session.
The rally also reflected broader geopolitical considerations. Ongoing global tensions and supply chain disruptions have highlighted the strategic importance of securing reliable domestic access to key raw materials. Strengthening these supply chains is increasingly viewed as essential not only for industrial growth but also for defense readiness.
In addition, long-term trends tied to clean energy, electrification and advanced technologies continue to support the investment case for critical minerals. Jan. 26’s market reaction underscored how quickly policy signals from Washington can influence the sector, reinforcing the view that rare earth and critical miner stocks are likely to remain closely tied to government strategy going forward.
Coeur Mining is a gold and silver miner that is also exposed to critical minerals. CDE’s expected earnings growth rate for the current year is 355.6%. The Zacks Consensus Estimate for its next-year earnings has improved 47.5% over the past 60 days. CDE has a Zacks Rank #1.
Idaho Strategic Resources is a miner of rare earths and other critical minerals. IDR’s expected earnings growth rate for the current year is 6%. The Zacks Consensus Estimate for its next-year earnings has surged 102.6% over the past 60 days. IDR has a Zacks Rank #2.
IperionX is a rare earth and critical mineral producer focused on advanced processing technologies. IPX’s expected earnings growth rate for the current year is 95%. The Zacks Consensus Estimate for its current-year earnings has not changed over the past 60 days. IPX has a Zacks Rank #2.
Bottom Line
The session’s rally in U.S. rare earth and critical miner stocks highlights how strongly the sector responds to policy support from Washington. With government incentives, national security priorities and clean-energy demand aligning, domestic producers are gaining strategic importance. Going forward, stock performance in this space is likely to remain closely tied to federal funding decisions, regulatory progress and geopolitical developments.
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3 Rare Earth Stocks to Watch as USAR Rallies on Washington Support
Key Takeaways
U.S. rare earth and critical miner stocks rallied on Jan. 26 as renewed discussion in Washington around expanding federal support for domestic supply chains boosted investor sentiment across the sector. The move reflected growing expectations that government policy could accelerate the development of U.S.-based sources for materials considered vital to economic and national security. As a result, stocks like Coeur Mining, Inc. (CDE - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and IperionX Limited (IPX - Free Report) come into focus.
The day’s rally was triggered by the U.S. government, as it took a major step to bolster domestic rare earth and critical mineral supply chains. Through the Commerce Department’s CHIPS Act program, it signed a non-binding deal to provide about $1.6 billion in funding and loans to USA Rare Earth, Inc. (USAR - Free Report) , including roughly $277 million in grants and $1.3 billion in loans, in exchange for an equity stake and warrants. USAR’s shares jumped 7.9% on the development.
Rare earths and other critical minerals, including lithium, nickel, cobalt and graphite, are essential for electric vehicles, renewable energy systems, advanced electronics and military applications. At present, the U.S. relies heavily on foreign suppliers for many of these materials, a vulnerability that has been a persistent concern among policymakers. Recent comments from Washington suggested increased momentum behind incentives designed to strengthen domestic mining, processing and refining capabilities.
Investors interpreted the policy discussion as a sign that expanded tax credits, direct funding and regulatory support could be forthcoming. Such measures would improve project economics and shorten development timelines for U.S. producers, making the sector more attractive from a long-term investment perspective. Shares of several companies involved in rare earth production and critical mineral exploration posted notable gains during the session.
The rally also reflected broader geopolitical considerations. Ongoing global tensions and supply chain disruptions have highlighted the strategic importance of securing reliable domestic access to key raw materials. Strengthening these supply chains is increasingly viewed as essential not only for industrial growth but also for defense readiness.
In addition, long-term trends tied to clean energy, electrification and advanced technologies continue to support the investment case for critical minerals. Jan. 26’s market reaction underscored how quickly policy signals from Washington can influence the sector, reinforcing the view that rare earth and critical miner stocks are likely to remain closely tied to government strategy going forward.
Our Choices
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coeur Mining is a gold and silver miner that is also exposed to critical minerals. CDE’s expected earnings growth rate for the current year is 355.6%. The Zacks Consensus Estimate for its next-year earnings has improved 47.5% over the past 60 days. CDE has a Zacks Rank #1.
Idaho Strategic Resources is a miner of rare earths and other critical minerals. IDR’s expected earnings growth rate for the current year is 6%. The Zacks Consensus Estimate for its next-year earnings has surged 102.6% over the past 60 days. IDR has a Zacks Rank #2.
IperionX is a rare earth and critical mineral producer focused on advanced processing technologies. IPX’s expected earnings growth rate for the current year is 95%. The Zacks Consensus Estimate for its current-year earnings has not changed over the past 60 days. IPX has a Zacks Rank #2.
Bottom Line
The session’s rally in U.S. rare earth and critical miner stocks highlights how strongly the sector responds to policy support from Washington. With government incentives, national security priorities and clean-energy demand aligning, domestic producers are gaining strategic importance. Going forward, stock performance in this space is likely to remain closely tied to federal funding decisions, regulatory progress and geopolitical developments.