USA Rare Earth Stock Is Down 60% -- Is September the Month to Buy the Dip?
Key Points
USA Rare Earth stock is trading down big from the high it hit last October.
The stock remains risky, but major developments at the company suggest it could be a good buy for some investors.
- 10 stocks we like better than USA Rare Earth ›
USA Rare Earth (NASDAQ: USAR) hasn't been publicly traded for very long, and it is experiencing high volatility, as many new stocks do. The company went public through a merger with a special purpose acquisition company (SPAC) in mid-March 2026, but its lifetime high of $43.98 per share actually came in October 2025, when it was still a pre-merger holding company.
As of this writing, the company's stock is priced at $17.66 per share -- down roughly 54% from its peak. With the stock still down big even as the rare-earth minerals specialist appears to be making meaningful progress, should investors be buying the dip in September?
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USA Rare Earth could be a good fit for a certain type of investor
USA Rare Earth has yet to report any revenue. On the other hand, the company recently acquired Serra Verde in a $2.8 billion deal that was mostly funded through the issuance of new stock.
Serra Verde is a Brazil-based rare-earth mining company that produces the "core four" rare-earth minerals: dysprosium, neodymium, praseodymium, and terbium. It's actually the only scaled producer of these minerals in the Western Hemisphere, and these resources are crucial for defense, technology, and alternative energy applications. In addition to Serra Verde's projects, USA Rare Earth is also developing its own mining project in Texas.
Notably, USA Rare Earth is receiving a lot of support from the U.S. government -- both direct investment in the company and a financing and purchasing agreement to support the Serra Verde acquisition. USA Rare Earth isn't the only company positioning itself as a provider of critical minerals to the U.S. as the country seeks to reduce its reliance on Chinese resources, but it is a player in this niche industry. That suggests the stock has the makings of a worthwhile addition, but only for for risk-tolerant investors looking to capitalize on this trend.
Should you buy stock 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.
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