USA Rare Earth Is Skyrocketing Today -- Is the Stock a Buy Right Now?

Source Motley_fool

Key Points

  • USA Rare Earth stock is rising today thanks to positive momentum for the broader market and bullish analyst coverage.

  • William Blair initiated coverage on USA Rare Earth with an outperform rating.

  • 10 stocks we like better than USA Rare Earth ›

USA Rare Earth (NASDAQ: USAR) stock is bounding higher in Monday's trading. The mining specialist's share price was up 15.9% as of 3:10 p.m. ET amid a gain of 1.1% for the S&P 500 and a gain of 1.4% for the Nasdaq Composite.

USA Rare Earth's valuation is climbing today as investors adopt more risk-averse positioning in the market. The stock is also getting a boost from bullish analyst coverage.

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A chart line going up over hundred dollar bills.

Image source: Getty Images.

William Blair published new coverage on USA Rare Earth stock before the market opened today, issuing an outperform rating on the stock. While the investment firm did not offer a price target on the stock, it did initiate coverage on USA Rare Earth with clearly bullish position. William Blair thinks the company's status as an integrated provider of rare-earth research services, extraction, and magnet manufacturing, and its stake in the Round Top mine, will help the company deliver wins for investors. The firm's analysts also think that the U.S. government could take a stake in USA Rare Earth.

Is USA Rare Earth stock a buy right now?

As of this writing, USA Rare Earth stock has surged 177.5% higher across 2025's trading. The gains have pushed the company's market capitalization to $3.6 billion. With the business still in a pre-revenue state, that means that USA Rare Earth stock comes with a high degree of risk.

On the other hand, it seems very likely that the U.S. will help moves to support domestic rare-earth mineral sourcing capabilities. So while USA Rare Earth stock remains a speculative growth bet, the stock could be a sensible portfolio addition for growth-oriented investors seeking investment plays that could benefit from shifting developments in crucial minerals markets.

Should you invest $1,000 in USA Rare Earth right now?

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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