Topic: How To Invest

Q: I see that shares of rare-earths company MP Materials are moving up. I think it’s in one of your newsletters. What’s your opinion on the stock going forward?

Article Excerpt

A: MP Materials Corp., $24.46, symbol MP on New York (Shares outstanding: 163.2 million; Market cap: $4.1 billion; www.mpmaterials.com), is the owner and operator of the Mountain Pass mine, the only significant rare-earth commercial mining and processing site in North America. Rare-earth elements are used in a variety of modern devices and applications: magnets in small and large motors; glass additives and glass polishing compounds; rechargeable batteries; television and computer screens; lighting; X-ray machines; and lasers. The stock is a recommendation of our Power Growth Investor newsletter. It’s now up 144.4% since August 2024—and that includes a recent jump. That impressive gain came after China, in retaliation for the Trump administration’s tariffs, placed new export controls on its rare earth elements and magnets. The restrictions apply to 7 of 17 rare earth elements—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—and require firms apply for special export licenses to sell the minerals and magnets. Apart from the array of uses we list above, rare earths are also essential for…