- USA Rare Earth (USAR) is caught in the middle of U.S.-China trade tensions, and shares are majorly benefitting.
- USAR stock is trading at new all-time highs.
- Shares are up more than 270% over the past year and 375% in the past six months.
- The stock has a 100% technical “Buy” opinion from Barchart and a “Strong Buy” consensus rating from analysts.
Today’s Featured Stock
USA Rare Earth (USAR), valued at $3.7 billion, is working to create a U.S. supply chain for rare earth minerals and magnets. It has a facility for magnet manufacturing in development in Oklahoma, mines in Texas, and a processing facility in Colorado. Shares have soared so far in 2025 because many investors have picked USA Rare Earth as a likely candidate for investment from President Donald Trump. His administration has already announced stakes in rare earth companies like MP Materials (MP) and Trilogy Metals (TMQ).
This is because China currently dominates the rare earth industry, and as U.S.-China trade tensions remain icy, curbs on those rare earth exports are ramping up. Last week, China implemented new restrictions that will now require U.S. firms to receive Chinese government approval to export products that include even trace amounts of Chinese rare earth minerals. Trump upped the ante in response, threatening new 100% tariffs on Chinese goods.
USA Rare Earth is caught up in this drama as retail traders add words like “gadolinium” and “yttrium” to their vocabulary.
What I’m Watching
I found today’s Chart of the Day by sorting through Barchart’s list of stocks at new 52-week highs for those with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “Buy” signal. USAR checks those boxes. Since the Trend Seeker signaled a new “Buy” on Sept. 18, the stock has gained 151%.
Barchart Technical Indicators for USA Rare Earth
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
USAR hit an all-time high of $41.95 in morning trading on Oct. 13.
- USAR has a Weighted Alpha of +214.79.
- USA Rare Earth has a 100% “Buy” opinion from Barchart.
- The stock has gained 273.86% over the past year.
- USAR has its Trend Seeker “Buy” signal intact.
- USA Rare Earth has made 14 new highs and is up 186.11% in the last month.
- Relative Strength Index is at 88.25.
- There’s a technical support level at $30.
Don’t Forget the Fundamentals
- $3.7 billion market capitalization.
- Analysts forecast that USA Rare Earth will generate its first revenue in 2026, reaching $45.88 million. Revenue is projected to increase 291% in 2027.
- Losses per share are projected to widen dramatically in 2025 before improving by 28.3% in 2026 and another 53.5% in 2027.
Analyst and Investor Sentiment on USA Rare Earth
As Jim Van Meerten, our regular Chart of the Day columnist, always says, “I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.”
USA Rare Earth has limited analyst coverage, but it seems that analysts who have discovered the stock love it. However, the stock may now be overvalued based on its share price surpassing the Street-high price target.
- The analysts tracked by Barchart give it 4 “Strong Buy” ratings and 1 “Hold” rating.
- Their price targets are between $15-$22. Investors should note that USA Rare Earth has far surpassed even the high price target of $22.
The Bottom Line on USA Rare Earth
USA Rare Earth is benefitting from a huge run-up in stocks associated with rare earth mining, and ongoing U.S.-China trade tensions threaten to keep these stocks in the spotlight. However, the U.S. rare earth mining industry is still nascent, and USA Rare Earth is still developing its magnet manufacturing and rare earth processing facilities.
If the Trump admin does announce an investment in USAR, shares could skyrocket further, but if such a deal does not materialize as many investors hope, they could pull back just as quickly. Investors should proceed with caution due to the stock’s volatility and use strict risk management strategies. You can learn more about options collars, one such risk management strategy, here.
Today’s Chart of the Day was written by Sarah Holzmann. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
