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NYSE:MP
This summary was created by AI, based on 3 opinions in the last 12 months.
MP Materials is anticipated to report positively amidst rising demand for rare earths, particularly given Washington's stance aiming to reduce reliance on China. While recent developments, such as a Pentagon investment and contracts with major companies like Apple, contribute to a sense of urgency among investors, analysts caution that the company's financial history shows losses over the past two years. The anticipated earnings per share (EPS) for the next year stands at 35 cents, which places the stock at a high valuation multiple of 171 times earnings. Despite the potential for EPS acceleration, the sentiment suggests a cooling off may occur after recent gains, especially considering significant short interest in the stock and the market's reaction to covering shorts. Therefore, while there’s excitement surrounding the company due to scarcity value, experts advise a cautious approach, favoring consolidation over immediate investment.
Certainly the company has a scarcity value, and recent news (The Pentagon investment and AAPL's contract) are extremely positive overall. There is a FOMO trade happening here, but it is important to note that the company has lost money in the past two years, with 35c in EPS expected next year. This makes it 'not cheap' certainly at 171X earnings. EPS could accelerate, though, and in a positive market investors are caring less on valuations. But we think we would side with caution for the moment. The likelihood of another big deal in the short term we think is low, and we think this excitement will fade, at least a bit, and we would prefer to let the stock consolidate recent gains. It still has a 23% short interest and part of the recent gains are clearly from panicked short sellers covering, and this made fade.
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MP Materials is a American stock, trading under the symbol MP (previously MP-N on Stockchase) on the New York Stock Exchange (MP). It is usually referred to as NYSE:MP or MP
In the last year, 2 stock analysts issued a Buy, Sell, or Hold rating on MP (previously MP-N on Stockchase). 2 analysts recommended to BUY and 0 analysts recommended to SELL the stock. The latest stock analyst rating is . Read the latest stock experts' ratings for MP Materials.
MP Materials was recommended as a Top Pick by Jim Cramer - Mad Money on 2021-10-27. Read the latest stock experts ratings for MP Materials.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for MP Materials.
MP Materials is followed by 9 investors on Stockchase and is a trending stock that is worth watching.
On 2026-06-12, MP Materials (MP) stock closed at a price of $57.55.
It reports Thursday. Expects positive news, because Washington doesn't want to be held hostage to China for these rare earths.