China’s stronghold on rare earth minerals prompts the US to bolster domestic production. USA Rare Earth emerges as a key player, reflected in a stock surge after inclusion in major indexes. With a $2.3 billion market cap, the company eyes full domestic supply capabilities and secured a supply deal, driving stock gains.

Despite a significant net loss in Q3 2025, USA Rare Earth continues hefty investments in long-term assets. Operational expenses rise but mark progress in critical projects like Round Top development and magnet facility commissioning. Analysts foresee near-term losses but anticipate improvement in fiscal 2026, supporting a “Strong Buy” rating.

USA Rare Earth’s resilience and potential are underscored by its cash balance, milestones reached, and analyst confidence. Despite early-stage losses, the company garners strong support, with a 35.9% potential upside according to the average price target. Analysts project fiscal 2026 to show narrowing losses, positioning USAR as a promising long-term investment.

Read more at Yahoo Finance: If You Invest in Rare Earths Stocks, Mark Your Calendars for December 22