MP Stock Surges 148% in a Year: Worth Including in Your Portfolio?

Core Insights - MP Materials (MP) shares have increased by 148.5% over the past year, outperforming the industry growth of 50.1%, the Zacks Basic Materials sector's rise of 44.7%, and the S&P 500's gain of 15.7% [1][6] - Despite MP's strong performance, competitors Lynas Rare Earths Limited (LYSDY) and Energy Fuels (UUUU) have achieved even higher gains of 162% and 148.5% respectively during the same period [2] Production and Financial Performance - MP Materials boosted its neodymium and praseodymium (NdPr) output by 51% in Q3 2025, reaching 721 metric tons, surpassing previous records [6][10] - For the first nine months of 2025, NdPr production totaled 1,881 metric tons, a 114% increase year-over-year, exceeding the 2024 production target of 1,294 metric tons [11] - Rare Earth Oxide (REO) production fell by 4% year-over-year to 13,254 metric tons in Q3, but it was still the second-highest quarter on record [12] Strategic Partnerships - In July 2025, MP Materials announced a long-term agreement with Apple to supply rare earth magnets made from recycled materials, enhancing its recycling technology [8] - MP also partnered with the Department of War (DoW) to expedite the development of a domestic rare earth magnet supply chain [8] - A joint venture with the Saudi Arabian Mining Company (Maaden) was established to develop a rare earth refinery in Saudi Arabia, leveraging the country's energy resources [9] Market Position and Valuation - MP is trading at a forward price/sales multiple of 23.35X, significantly higher than the industry's 1.30X, indicating a stretched valuation [17] - The Zacks Consensus Estimate projects a revenue growth of 13.7% for fiscal 2025 and an 80.7% rise in 2026, although earnings estimates have been revised downward [14][23] Long-Term Growth Prospects - MP Materials operates the only large-scale rare earth mining and processing facility in North America, positioning itself well for the growing demand in clean-tech technologies [19] - The company is set to construct a second domestic magnet manufacturing facility, increasing U.S. rare earth magnet capacity to 10,000 metric tons [22] - The multi-billion-dollar investment from the DoW and partnerships with major companies like Apple provide a strong foundation for future growth [22]