MP Materials Is Up 30% in a Month. Is It Too Late to Buy the Only U.S. Mine-to-Magnet Stock?

Investors have been bidding up the price of MP Materials (NYSE: MP) ahead of the company's first quarter 2026 earnings release. Over the past month alone, the shares have risen by more than 30%. However, the stock is still down more than 30% from its 52-week high. That said, the company turned a profit in the fourth quarter of 2025, so it may have hit an important turning point as a business. Is it worth buying?

MP Materials has a long runway ahead

MP Materials is well-positioned to be a vital supplier of rare-earth metals. The miner and rare-earth metal processor has been preparing for this for some time, as it looks to provide customers with an alternative to buying rare-earth metals from China. China has proven it will use access to rare-earth metals as a political bargaining chip, a situation which most companies would likely prefer to avoid.

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From a big-picture perspective, MP Materials is in the right place at the right time, as demand for rare-earth metals is expected to grow. These metals are vital for modern technology and national defense. So not only is MP Materials likely to see demand from companies looking to diversify their supply chains, but there is also organic demand in the mix. MP Materials could have a long runway for growth ahead as it continues to build out its business.

MP Materials had a profitable quarter, with more likely to come

MP Materials ended 2025 on a positive note, turning a profit in the fourth quarter. It is a start-up company, and it remains early in the business's development, so it still has to prove that it can be sustainably profitable. However, it has become clear fairly quickly that positive earnings are within reach.

Still, investors need to recognize that emotions are playing a big role in the stock's price at this point. A 30% gain in a month is a huge price move. It is highly likely that volatility will remain elevated in the near term, even if the company's earnings are strong. If you buy the stock, you need to be prepared to stick around for the long term as it continues to build out its business. That's the only way you can really benefit from its business growth.

Don't buy MP Materials just because of the rally

Given MP Materials' still-early stage of development as a business, it probably isn't too late to buy the stock. However, the stock's large swings show that you need a strong stomach and a long-term commitment if you are going to buy this rare-earth metals company. Buying just because it has gone up or down in the short term isn't the right way to look at MP Materials. One month, quarter, or even a year isn't going to let you tap into the rare-earth metals opportunity that MP Materials is presenting. It is a stock for more aggressive growth investors who see the long-term appeal of a U.S.-based rare-earth metals supplier.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.