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MP Gains 164% in a Year: Should You Buy, Sell or Hold the Stock?
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Key Takeaways
MP shares gained 164% in a year, while first-quarter 2026 revenues rose 49% year over year.
MP produced a record 917 MT of NdPr and 12,983 MT of REO concentrates in the first quarter.
MP is expanding magnet capacity, targeting 10,000 MT of annual U.S. production capacity.
MP Materials’ (MP - Free Report) shares have skyrocketed 164.4% in the past year, significantly outperforming the industry’s 60.8% growth, the Zacks Basic Materials sector’s 49% rise and the S&P 500’s gain of 24%.
MP’s Performance Against Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research
Other rare earth stocks, Lynas Rare Earths Limited (LYSDY - Free Report) and Energy Fuels (UUUU - Free Report) , have gained 126.3% and 221.2%, respectively. Given MP’s impressive rally, investors may wonder whether the stock can continue climbing. A closer look at the company’s recent performance, growth drivers, outlook and risks can help answer that question.
MP Q126 Revenues Rise But Losses Persist
MP Materials generated total revenues of $90.6 million in the first quarter of 2026, up 49% year over year. The company also recognized $42.3 million in income related to a price protection agreement (PPA) with the Department of War (DoW).
Revenues from the Materials segment increased 30% year over year to $72.2 million, supported by stronger NdPr pricing and sales volumes. The Magnetics segment delivered revenues of $21 million, driven by increased production of magnetic precursor products. In the year-ago quarter, the segment generated $5.2 million in revenues from its first metal deliveries.
Cost of sales climbed 52% due to higher sales volumes, while selling, general and administrative expenses rose 39.2%, attributed to increased personnel costs. Start-up expenses jumped 503% as activities related to magnet production and chlor-alkali operations accelerated. Advanced projects and development expenses spiked 302% due to higher costs incurred for legal, consulting and advisory services to support growth initiatives. The company posted adjusted earnings of three cents per share against the year-ago quarter’s loss of 12 cents.
Producing separated rare earth products and magnetic materials involves significantly higher costs than concentrate production, due to additional processing requirements, chemical inputs, labor and maintenance. Cost of sales is, thus, expected to trend higher, reflecting increased sales of NdPr oxide and metal, along with added costs associated with magnetic precursor products. Start-up costs are also likely to increase further in the coming quarters.
MP Materials’ Operational Momentum Remains Strong
MP Materials produced a record 917 metric tons of NdPr in the first quarter, a 63% year-over-year surge, as a result of ramping production of separated products. The company also achieved record production of 12,983 MT of rare earth oxides (REO) in concentrates during the first quarter, marking a 6% year-over-year increase, driven by improved recoveries and operational efficiencies. It also continues to ramp up its production of magnetic precursor products at the Independence Facility.
MP’s Estimates Indicate Growth, Though Revisions Trend Lower
The Zacks Consensus Estimate for MP Materials’ 2026 earnings stands at 16 cents per share, reflecting a turnaround from the projected loss of 24 cents in 2025. The 2027 estimate is currently pegged at $1.06 per share, implying growth of 562.5%.
Image Source: Zacks Investment Research
Earnings estimates for both 2026 and 2027 have been revised downward over the past 90 days.
Image Source: Zacks Investment Research
MP Materials Stock Trades at a Premium
MP is trading at a forward 12-month price/sales multiple of 20.50X, a significant premium to the industry’s 1.35X. The company’s Value Score of F suggests that the stock is not so cheap and has a stretched valuation at this moment.
Image Source: Zacks Investment Research
Energy Fuels is trading higher at 25.25X while Lynas is comparatively a cheaper option, trading at 11.81X.
MP Materials’ Long-Term Outlook Remains Attractive
MP Materials is the only fully integrated rare earth producer in the United States, with operations spanning mining, processing, metallization and magnet manufacturing.
The company is expanding operations at its Independence facility and has begun construction of the 10X magnetics facility. Commissioning activities for scaled heavy rare earth separation are also expected to begin soon at Mountain Pass. The 10X facility, MP’s second domestic rare earth magnet manufacturing plant, is expected to begin commissioning in 2028 and produce approximately 7,000 metric tons of magnets annually.
Combined with the Independence facility’s 3,000-metric-ton capacity, MP’s total U.S. rare earth magnet production capacity is expected to reach 10,000 metric tons per year, strengthening domestic supply for both defense and commercial applications.
Our Final Take on MP Stock
MP Materials offers a compelling long-term investment case backed by its strategic position in the U.S. rare earth supply chain, expanding production capabilities and ongoing capacity investments. Existing shareholders may consider holding the stock to benefit from these long-term growth drivers.
However, prospective investors may prefer to wait for a more attractive entry point given the stock’s premium valuation, rising operating and start-up costs, and recent downward revisions to earnings estimates. MP currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
MP Gains 164% in a Year: Should You Buy, Sell or Hold the Stock?
Key Takeaways
MP Materials’ (MP - Free Report) shares have skyrocketed 164.4% in the past year, significantly outperforming the industry’s 60.8% growth, the Zacks Basic Materials sector’s 49% rise and the S&P 500’s gain of 24%.
MP’s Performance Against Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research
Other rare earth stocks, Lynas Rare Earths Limited (LYSDY - Free Report) and Energy Fuels (UUUU - Free Report) , have gained 126.3% and 221.2%, respectively.
Given MP’s impressive rally, investors may wonder whether the stock can continue climbing. A closer look at the company’s recent performance, growth drivers, outlook and risks can help answer that question.
MP Q126 Revenues Rise But Losses Persist
MP Materials generated total revenues of $90.6 million in the first quarter of 2026, up 49% year over year. The company also recognized $42.3 million in income related to a price protection agreement (PPA) with the Department of War (DoW).
Revenues from the Materials segment increased 30% year over year to $72.2 million, supported by stronger NdPr pricing and sales volumes. The Magnetics segment delivered revenues of $21 million, driven by increased production of magnetic precursor products. In the year-ago quarter, the segment generated $5.2 million in revenues from its first metal deliveries.
Cost of sales climbed 52% due to higher sales volumes, while selling, general and administrative expenses rose 39.2%, attributed to increased personnel costs. Start-up expenses jumped 503% as activities related to magnet production and chlor-alkali operations accelerated. Advanced projects and development expenses spiked 302% due to higher costs incurred for legal, consulting and advisory services to support growth initiatives. The company posted adjusted earnings of three cents per share against the year-ago quarter’s loss of 12 cents.
Producing separated rare earth products and magnetic materials involves significantly higher costs than concentrate production, due to additional processing requirements, chemical inputs, labor and maintenance. Cost of sales is, thus, expected to trend higher, reflecting increased sales of NdPr oxide and metal, along with added costs associated with magnetic precursor products. Start-up costs are also likely to increase further in the coming quarters.
MP Materials’ Operational Momentum Remains Strong
MP Materials produced a record 917 metric tons of NdPr in the first quarter, a 63% year-over-year surge, as a result of ramping production of separated products. The company also achieved record production of 12,983 MT of rare earth oxides (REO) in concentrates during the first quarter, marking a 6% year-over-year increase, driven by improved recoveries and operational efficiencies. It also continues to ramp up its production of magnetic precursor products at the Independence Facility.
MP’s Estimates Indicate Growth, Though Revisions Trend Lower
The Zacks Consensus Estimate for MP Materials’ 2026 earnings stands at 16 cents per share, reflecting a turnaround from the projected loss of 24 cents in 2025. The 2027 estimate is currently pegged at $1.06 per share, implying growth of 562.5%.
Earnings estimates for both 2026 and 2027 have been revised downward over the past 90 days.
Image Source: Zacks Investment Research
MP Materials Stock Trades at a Premium
MP is trading at a forward 12-month price/sales multiple of 20.50X, a significant premium to the industry’s 1.35X. The company’s Value Score of F suggests that the stock is not so cheap and has a stretched valuation at this moment.
Image Source: Zacks Investment Research
Energy Fuels is trading higher at 25.25X while Lynas is comparatively a cheaper option, trading at 11.81X.
MP Materials’ Long-Term Outlook Remains Attractive
MP Materials is the only fully integrated rare earth producer in the United States, with operations spanning mining, processing, metallization and magnet manufacturing.
The company is expanding operations at its Independence facility and has begun construction of the 10X magnetics facility. Commissioning activities for scaled heavy rare earth separation are also expected to begin soon at Mountain Pass. The 10X facility, MP’s second domestic rare earth magnet manufacturing plant, is expected to begin commissioning in 2028 and produce approximately 7,000 metric tons of magnets annually.
Combined with the Independence facility’s 3,000-metric-ton capacity, MP’s total U.S. rare earth magnet production capacity is expected to reach 10,000 metric tons per year, strengthening domestic supply for both defense and commercial applications.
Our Final Take on MP Stock
MP Materials offers a compelling long-term investment case backed by its strategic position in the U.S. rare earth supply chain, expanding production capabilities and ongoing capacity investments. Existing shareholders may consider holding the stock to benefit from these long-term growth drivers.
However, prospective investors may prefer to wait for a more attractive entry point given the stock’s premium valuation, rising operating and start-up costs, and recent downward revisions to earnings estimates. MP currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.