Why USA Rare Earth (USAR) Stock Is Skyrocketing Today

Shares of USA Rare Earth Inc USAR are climbing sharply Tuesday afternoon, riding a wave of positive sentiment sweeping through the domestic critical minerals sector for the session.

The stock is rallying in sympathy with competitor MP Materials Corp MP, which saw its shares soar following two significant developments boosting the case for American rare earth production.

What To Know: MP Materials announced a landmark long-term partnership to supply Apple Inc with rare earth magnets manufactured in the U.S. from 100% recycled materials.

Under the agreement, MP will process recycled feedstock at its Mountain Pass, California facility and produce the finished magnets for the iPhone maker at its plant in Texas. This major corporate endorsement highlights the growing demand for a secure, domestic supply chain.

Adding to the bullish sentiment, a CNBC report revealed the Pentagon is taking direct action to counter China’s dominance. A defense official confirmed the Department of Defense recently acquired a major equity stake in MP Materials, signaling robust government backing for American producers.

Per the CNBC report, The Pentagon has invested over $540 million to support the critical mineral supply chain, viewing it as essential for national security.

This combination of a landmark commercial deal and government investment in a U.S.-based peer has ignited investor confidence across the industry, lifting related stocks like USAR on expectations of a potentially revitalized domestic rare earth ecosystem.

Benzinga Edge Rankings: According to recent data from Benzinga Edge, Wall Street has shown increasing interest in USA Rare Earth. Within the last two months, two separate analyst firms have initiated coverage on the stock, both with positive outlooks.

On May 29, Roth Capital began its coverage with a Buy rating and a $15 price target. This was followed on June 13 by Canaccord Genuity, which also initiated coverage with a Buy rating and a higher price target of $17.

Price Action: According to data from Benzinga Pro, USAR shares are trading higher by 32% to $15.64 Tuesday afternoon. The stock has a 52-week high of $20.00 and a 52-week low of $5.56.

Read Also: Rare Earth Royalty: Meet The Power Players Shaping The Industry

How To Buy USAR Stock

By now you’re likely curious about how to participate in the market for USA Rare Earth – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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