Aug. 14, 2025 at 10:02 AM ET6 min read

Is MP Materials Corp. Stock A Buy Now?​

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

MP Materials Corp. stocks have been trading up by 2.63 percent following a significant expansion in rare earth production capacity.

Recent Developments in Partnership and Growth

  • A long-term agreement was secured by MP Materials with Apple for rare earth magnets, highlighting the company’s strategic positioning in the valuable tech industry.
  • Jefferies upgraded MP Materials to “Buy”, attaching an $80 price target following transformational collaboration announcements with the Department of Defense and the potential for more such deals.
  • TD Cowen raised its price target for MP Materials to $80 from $55, maintaining a “Buy” rating on the back of robust performance in the NdPr market and a strong sales pipeline.
  • Bank of America lifted the price of MP Materials to $78 while maintaining a “Buy”, crediting a public-private partnership with the U.S. Department of Defense and improved earnings forecasts.
  • The U.S. government’s plan to increase price support for home-grown rare earths initiatives is viewed as a big boon for developers and miners like MP Materials.

Candlestick Chart

Live Update At 10:02:02 EST: On Thursday, August 14, 2025 MP Materials Corp. stock [NYSE: MP] is trending up by 2.63%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Metrics and Performance Snapshot

Achieving success in the world of trading often requires more than just talent and intuition. It demands a disciplined approach that’s built around consistency and daily engagement with the markets. As Tim Bohen, lead trainer with StocksToTrade says, “A consistent trading routine beats sporadic action every time. Show up daily, and you’ll start to see the patterns others miss.” This commitment allows traders to identify subtle patterns and trends that might be overlooked by those who participate only sporadically. Over time, this consistent dedication is what distinguishes successful traders from those who struggle to achieve their financial goals.

MP Materials has been experiencing a particularly thriving quarter. The company reported an 84% jump in Q2 revenue to $57.4M, surpassing analyst expectations by 26%. For a company like MP, this surge can be attributed to the lucrative sale of high-value sets such as NdPr oxides and metals. Even though there was an adjusted loss per share of $0.13, it marked an improvement from the previous year’s loss of $0.17, again beating expert predictions by $0.07. More impressively, they managed to set new records in NdPr production, illuminating robust production capabilities.

A quintessential driver of this remarkable growth narrative is the strategic alliances with both the Department of Defense and Apple, laying the groundwork for a promising financial prospect. In particular, the DoD agreement establishes a price floor for NdPr, lifting MP out of market volatility. This price assurance provides stability and strengthens investor confidence in a bullish trajectory for the stock.

From a financial metric lens, MP Materials’ intrinsic performance can be dissected through key figures. Revenue has notably grown at 36.49% over five years, emphasizing the expansion footprint. The gross margin sits at 25.8%, showing sound cost management and profitability potential. Additionally, their current ratio of 3.6 indicates a healthy liquidity position, ensuring they can meet short-term obligations comfortably. However, one must note the company’s high price-to-sales ratio at 54.82, reflecting investor optimism balancing on speculative grounds.

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Balance sheet insights further portray a solid foundation; with total assets standing at $2.336B, and long-term debt being managed carefully at approximately $849M. MP Materials is backed by significant shareholder equity of $1.01B, pointing toward substantial backing and potential for strategic investments or acquisitions.

Impact of Strategic Partnerships and Market Trajectory

The technological and defense sectors’ increasing reliance on crucial rare earth magnets and materials signals a prosperous route for MP Materials. The partnership with Apple isn’t just a business maneuver; it is a strategic alignment placing MP at the helm of tech innovation.

Buoyant endorsements by Baird analysts raising targets to $80 showcase confidence in MP’s profitable magnet margins. Partnerships with big industry names and the DoD’s commitment pivot MP Materials as the fulcrum within American supply chains—lessening dependency on Chinese imports, which had often dictated market pricing.

Will MP Materials maintain this upward growth trend?

From both market and investor viewpoints, the question remains centered around sustainability of these gains. While governmental and tech partnerships offer fertile grounds for expansion, market enthusiasts must weigh inherent risks associated with geopolitical shifts or glossy competition eyeing the coveted rare earths field.

Conclusion: A Bright Prospective for MP Materials

MP Materials has crafted a narrative laden with growth and opportunity. The emerging partnerships with Apple and DoD promise lucrative turnouts, underpinned by strategic foresight and commendable results from their Q2 reprisal. However, scalping opportunities might be optimal in this dynamic landscape, as burgeoning valuations hint at speculative inclines. Traders might lean towards cautious optimism, staying attuned to potential disruptions in the geopolitical spectrum or rival leaps that could recalibrate strategic plans. As Tim Bohen, lead trainer with StocksToTrade says, “The best trades are the ones you can make without emotion. Plan it, then execute it as if it’s routine.” This disciplined approach might serve traders well as they navigate the flourishing yet volatile market landscape.

For observers and industry stakeholders alike—MP Materials presents itself as a resplendent story of aligning strategic partnerships with market demands, wiring itself tuned for prosperity in the throes of technological advancement and resource resilience.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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