The Defense Stock You’ve Never Heard Of: Why MP Materials Is a Buy

• MP Materials (MP) astatine $58.23 is up 138.65%, Q4 EPS of $0.09 bushed $0.02 estimate, Pentagon $110/kg level price, expert people $78.50, and Apple (AAPL) and General Motors (GM) signed arsenic customers.

• MP Materials is the lone integrated uncommon world shaper successful the U.S. with Pentagon backing via terms guarantees arsenic the state builds home proviso independency from China’s 90% planetary accumulation dominance.

• The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.

MP Materials (NYSE: MP) sits astatine the halfway of 1 of the astir consequential proviso concatenation shifts successful modern American concern policy. With shares astatine $58.23, up 138.65% implicit the past year, the marketplace is pricing successful a geopolitical displacement that has drawn important attention: the U.S. has astir nary home uncommon world proviso chain, and MP is the lone institution susceptible of gathering 1 astatine scale.

MP operates the lone integrated uncommon world mining and processing level successful the United States, anchored by the Mountain Pass excavation successful California and the Independence magnetics installation successful Fort Worth, Texas. "China accounts for astir 90% of planetary NdPr production, yet adjacent there, astir of that output comes from conscionable 2 hard stone mines and refineries," CEO James Litinsky noted connected the Q3 2025 net call. Outside China, lone Mountain Pass and Australia's Mount Weld run astatine meaningful scale. That structural scarcity is MP's astir durable competitory advantage.

In October 2025, MP activated a landmark Price Protection Agreement with the U.S. Department of Defense, guaranteeing a $110 per kilogram level terms for NdPr oxide. The Pentagon holds a 15% involvement successful the institution and has committed to a 10-year offtake statement supporting the caller Texas magnet campus. The fiscal interaction was immediate: Q4 2025 delivered $51.02 cardinal successful PPA income, flipping the institution to $9.43 cardinal successful nett income versus a $22.34 cardinal nonaccomplishment successful Q4 2024. EPS of $0.09 bushed the statement estimation of $0.02.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

MP is breaking crushed successful 2026 connected a 120-acre field successful Northlake, Texas, designed to nutrient astir 10,000 metric tons of uncommon world magnets annually by 2028, attracting astir $200 cardinal successful authorities and section incentives. Apple and General Motors are already signed arsenic customers. "We person 100% offtake secured for 10X," CFO Ryan Corbett confirmed connected the Q3 call.

The bull lawsuit carries existent risks. Insiders sold astir $19.2 cardinal worthy of shares successful the astir caller quarter, including CEO Litinsky disposing of 272,600 shares connected January 8, 2026. Much of this enactment coincided with RSU vesting events, suggesting portfolio rebalancing alternatively than mislaid conviction, but the measurement warrants attention. Full-year 2025 gross of $224.44 cardinal somewhat missed estimates, and the institution remains successful dense concern mode with $172.38 cardinal successful superior expenditures past year. Analysts transportation an mean terms people of $78.50, implying meaningful upside, with 15 of 15 analysts standing the banal a Buy oregon Strong Buy.