2 Reasons to Buy MP Materials Stock, and 1 Reason to Sell

MP Materials, operator of the only active rare-earth mine in the U.S., benefits from a historic government partnership including a $400 million investment and a 10-year price protection agreement guaranteeing $110/kg for its products. The company achieved record Q1 production and revenue growth, but faces significant capital requirements ($1.25 billion) for its Texas magnet manufacturing facility, with completion not expected until 2028. The stock has declined 46% from its 52-week high and trades at 54x projected 2027 earnings.