MP Materials Corp. (MP) shares ended the last trading session 10% higher at $27.58. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.6% loss over the past four weeks.

MP Materials shares climbed as rare earth prices have gained amid the escalating trade war between the United States and China. On April 15, 2025, U.S. President Donald Trump signed an Executive Order initiating an investigation into the national security risks posed by U.S. dependence on imported processed critical minerals and their derivative products. Critical minerals, including rare earth elements, are essential for national security and economic resilience. This move could result in tariffs on rare-earth minerals and other critical materials.

In retaliation, China suspended exports of rare earth minerals, dealing a significant blow to the industries that rely on rare earth minerals for the manufacturing of their products, including semiconductors, electric vehicles and defense. Roughly 70% of U.S. rare earth imports originate from China. Considering that MP Materials’ Mountain Pass facility is America’s only scaled rare earth production source, it is well-positioned to benefit from this shift toward domestic production. 

This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of -150%. Revenues are expected to be $67.05 million, up 37.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For MP Materials, the consensus EPS estimate for the quarter has been revised 15.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

MP Materials belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, Wheaton Precious Metals Corp. (WPM), closed the last trading session 1.7% higher at $84.76. Over the past month, WPM has returned 10.4%.

Wheaton Precious Metals' consensus EPS estimate for the upcoming report has changed +2.7% over the past month to $0.48. Compared to the company's year-ago EPS, this represents a change of +33.3%. Wheaton Precious Metals currently boasts a Zacks Rank of #3 (Hold).

Story Continues

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MP Materials Corp. (MP):Free Stock Analysis Report

Wheaton Precious Metals Corp. (WPM):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments