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USAR Stock Rises 98.6% in a Year: Should Investors Buy or Wait?
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Key Takeaways
USAR surged 98.6% in a year, beating the industry and S&P 500 despite trading below key moving averages.
USA Rare Earth commissioned Phase 1a magnet line, targeting 600 metric tons capacity by the end of 2026.
USAR raised $1.5B, plans expansion and acquisitions, but faces rising costs and no revenue yet.
USA Rare Earth, Inc. (USAR - Free Report) shares have surged 98.6% in the past year, outperforming both the industry and the S&P 500, which have returned 56.7% and 24.6%, respectively. In comparison, the company’s peers like BHP Group Limited (BHP - Free Report) and MP Materials (MP - Free Report) have gained 65.3% and 107.8%, respectively, over the same time frame.
USAR Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $14.64 in the last trading session, the stock is trading below its 52-week high of $43.98 but higher than its 52-week low of $7.25. The stock is trading below both 50-day and 200-day moving averages, indicating weakness across both short and long-term trends.
USAR Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Let’s take a look at USAR’s fundamentals to better analyze how to play the stock.
Factors Driving USAR’s Performance
USAR has marked a significant milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater facility in Oklahoma. Due to this development, the company will be able to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets starting in the second quarter of 2026. It is worth noting that in 2025, USAR installed equipment, assembled Line 1a and prepared the facility for commissioning in 2026.
The commissioning confirms the facility’s ability to operate a complex, multi-step manufacturing process at a commercial scale. The production process involves the transformation of rare earth and metallic elements into ultra-fine powder, refining it through jet milling in a controlled environment and then shaping, coating and magnetizing the material into NdFeB magnets. These high-performance magnets are used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to ramp up to an annual run rate capacity of 600 metric tons by the end of 2026. In the quarters ahead, the addition of Phase 1b is expected to double the Stillwater facility’s total capacity to 1,200 metric tons per annum by the first quarter of 2027.
Once fully operational, the Stillwater facility is expected to be one of the first large-scale NdFeB magnet plants in the United States, helping strengthen the country’s domestic rare earth supply chain. With demand for high-performance magnets rising, this milestone helps USAR tap new opportunities and support its long-term growth.
USA Rare Earth also bolstered its balance sheet through PIPE financing and warrant exercises. It is worth noting that the company completed the $1.5 billion PIPE financing in January 2026. This funding is being used to make upgrades at the Stillwater plant, expand magnet finishing capabilities and complete Line 1b to increase total NdFeB magnet-producing capacity to roughly 1,200 metric tons.
In March 2026, USA Rare Earth inked a deal to acquire Texas Mineral Resources Corp. in an all-stock deal worth about $73 million. This will give the company full ownership and operational control of the Round Top Project. USAR expects commercial production at Round Top to begin in 2028, with a target to process around 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. Also, USAR completed the acquisition of Less Common Metals in November 2025, which will supply critical metal and alloy feedstock for the Stillwater plant.
In January 2026, USA Rare Earth entered into a non-binding Letter of Intent (the LOI) with the U.S. Department of Commerce and announced collaboration with the U.S. Department of Energy (DOE). The Department of Commerce’s CHIPS Program has provided an LOI entailing $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act, a total of $1.6 billion.
However, since its inception, USA Rare Earth has remained in the exploration and research stages, incurring losses while yet to generate any revenues. Amid its project development phase, the company has been grappling with rising operational expenses, adversely impacting its margins and profitability. In fourth-quarter 2025, USAR’s selling, general and administrative expenses increased to $18.5 million from $4.5 million in the year-ago quarter due to a rise in legal & consulting costs, higher headcount & recruiting fees, and other costs.
Research and development expenses rose to $7.2 million compared with $1.4 million reported in the year-ago quarter due to an increase in employee-related expenses. The lack of revenues and elevated expenses resulted in a loss of 19 cents per share in the fourth quarter.
USAR operates in the mineral exploration and mining markets, which include major industry players like BHP Group and MP Materials.
USAR’s Estimate Revisions
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s bottom line for 2026 has decreased in the past 60 days.
Valuation
Image Source: Zacks Investment Research
From a valuation standpoint, USA Rare Earth is trading at a forward price-to-earnings ratio of a negative 24.75X against the industry average of 14.20X. In comparison, BHP Group and MP Materials are trading at 14.87X and 139.40X, respectively.
Final Take
USA Rare Earth recently commissioned Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma. The company strengthened its strategy through the acquisition of Less Common Metals and the planned purchase of Texas Mineral Resources to secure the Round Top Project. However, it remains pre-revenue and continues to incur losses as operating and R&D expenses are rising, which is expected to weigh on this Zacks Rank #3 (Hold) company’s near-term performance.
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USAR Stock Rises 98.6% in a Year: Should Investors Buy or Wait?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) shares have surged 98.6% in the past year, outperforming both the industry and the S&P 500, which have returned 56.7% and 24.6%, respectively. In comparison, the company’s peers like BHP Group Limited (BHP - Free Report) and MP Materials (MP - Free Report) have gained 65.3% and 107.8%, respectively, over the same time frame.
USAR Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $14.64 in the last trading session, the stock is trading below its 52-week high of $43.98 but higher than its 52-week low of $7.25. The stock is trading below both 50-day and 200-day moving averages, indicating weakness across both short and long-term trends.
USAR Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Let’s take a look at USAR’s fundamentals to better analyze how to play the stock.
Factors Driving USAR’s Performance
USAR has marked a significant milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater facility in Oklahoma. Due to this development, the company will be able to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets starting in the second quarter of 2026. It is worth noting that in 2025, USAR installed equipment, assembled Line 1a and prepared the facility for commissioning in 2026.
The commissioning confirms the facility’s ability to operate a complex, multi-step manufacturing process at a commercial scale. The production process involves the transformation of rare earth and metallic elements into ultra-fine powder, refining it through jet milling in a controlled environment and then shaping, coating and magnetizing the material into NdFeB magnets. These high-performance magnets are used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to ramp up to an annual run rate capacity of 600 metric tons by the end of 2026. In the quarters ahead, the addition of Phase 1b is expected to double the Stillwater facility’s total capacity to 1,200 metric tons per annum by the first quarter of 2027.
Once fully operational, the Stillwater facility is expected to be one of the first large-scale NdFeB magnet plants in the United States, helping strengthen the country’s domestic rare earth supply chain. With demand for high-performance magnets rising, this milestone helps USAR tap new opportunities and support its long-term growth.
USA Rare Earth also bolstered its balance sheet through PIPE financing and warrant exercises. It is worth noting that the company completed the $1.5 billion PIPE financing in January 2026. This funding is being used to make upgrades at the Stillwater plant, expand magnet finishing capabilities and complete Line 1b to increase total NdFeB magnet-producing capacity to roughly 1,200 metric tons.
In March 2026, USA Rare Earth inked a deal to acquire Texas Mineral Resources Corp. in an all-stock deal worth about $73 million. This will give the company full ownership and operational control of the Round Top Project. USAR expects commercial production at Round Top to begin in 2028, with a target to process around 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. Also, USAR completed the acquisition of Less Common Metals in November 2025, which will supply critical metal and alloy feedstock for the Stillwater plant.
In January 2026, USA Rare Earth entered into a non-binding Letter of Intent (the LOI) with the U.S. Department of Commerce and announced collaboration with the U.S. Department of Energy (DOE). The Department of Commerce’s CHIPS Program has provided an LOI entailing $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act, a total of $1.6 billion.
However, since its inception, USA Rare Earth has remained in the exploration and research stages, incurring losses while yet to generate any revenues. Amid its project development phase, the company has been grappling with rising operational expenses, adversely impacting its margins and profitability. In fourth-quarter 2025, USAR’s selling, general and administrative expenses increased to $18.5 million from $4.5 million in the year-ago quarter due to a rise in legal & consulting costs, higher headcount & recruiting fees, and other costs.
Research and development expenses rose to $7.2 million compared with $1.4 million reported in the year-ago quarter due to an increase in employee-related expenses. The lack of revenues and elevated expenses resulted in a loss of 19 cents per share in the fourth quarter.
USAR operates in the mineral exploration and mining markets, which include major industry players like BHP Group and MP Materials.
USAR’s Estimate Revisions
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s bottom line for 2026 has decreased in the past 60 days.
Valuation
Image Source: Zacks Investment Research
From a valuation standpoint, USA Rare Earth is trading at a forward price-to-earnings ratio of a negative 24.75X against the industry average of 14.20X. In comparison, BHP Group and MP Materials are trading at 14.87X and 139.40X, respectively.
Final Take
USA Rare Earth recently commissioned Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma. The company strengthened its strategy through the acquisition of Less Common Metals and the planned purchase of Texas Mineral Resources to secure the Round Top Project. However, it remains pre-revenue and continues to incur losses as operating and R&D expenses are rising, which is expected to weigh on this Zacks Rank #3 (Hold) company’s near-term performance.
While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.