Charging the Future : Is USA Rare Earth A Buy?
πππUSAR $USA Rare Earth Inc.(USAR)$ sits at the epicentre as nations race to secure the materials powering tomorrow's technology. Is USAR a Buy?
Macro Tailwind : A USD 5 billion US Government Lifeline
The Trump Administration is moving decisively to break foreign supply chains. The US International Development Finance Corporation and Orion Resource Partners are structuring a joint vehicle to funnel USD 5 billion into critical minerals projects, from exploration through to processing. This is the largest infusion of capital ever aimed squarely at rare earths. It is exactly the kind of capital to turbocharge USAR's growth and help it to develop USAR's expansion plans.
Monetary Fuel as Fed is looking to cut interest rate this week
The US Federal Reserve is on the brink of its first rate cut since December 2024 with expectations of a 25 basis point rate cut. Cheaper borrowing costs soften the hurdle for miners to raise project finance and for manufacturers to lock in long term mining deals. In a world that is accustomed to tightening, a Fed rate cut is a powerful tailwind for capital intensive ventures like USAR's projects.
What Rare Earth Metals Actually Do:
Rare Earth Metals are important picks and shovels of modern technologies. Their unique magnetic, luminescent and catalytic properties power permanent magnets in EV motors and wind turbine generators.
Rate earth metals are catalysts in automotive converters and petrochemical processes.
They are used for LED lighting and high definition displays.
Rare Earths are composites in MRI contrast agents and precision guided defense systems.
Rare Earths are used in alloys to improve metal strength and corrosion resistance.
Analysts Consensus : Strong Buy
3 analysts - Cantor Fitzgerald, Canaccord Grnuity and Roth Capital have initiated coverage with bullish ratings, Target price ranging from USD 15 to USD 17.
Earnings And Revenue Forecasts
2025 EPS Estimate - USD 0.81
2026 Revenue Estimate - USD 45.88 million.
Despite near term losses, analysts expect 56% growth in 2026. This is a sign of confidence in USAR's scaling potential.
USAR Share Price Performance
USAR is up USD 14.92 or 8.5% from Tuesday trading. It has risen 20% year todate.
Concluding Thoughts
USAR is more than just a commodity play. It is a stake in national security, climate leadership and America's high tech sovereignity.
With an unanimous Buy rating, a massive public funding vehicle, an easing Fed and irreplaceable end market applications, $USA Rare Earth Inc.(USAR)$ isn't just a Buy. It is a strategic cornerstone in the making.
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- koolgalΒ·09-17TOP@DKim This post is for you since you asked about why I choose $USA Rare Earth Inc.(USAR)$1Report
- Enid BerthaΒ·09-17TOPNo debt best magnet plant in the us being rolled forward in 3 months . We are coming for 30-40 dollars minimum within the next couple of years1Report
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