USA Rare Earth, Inc. (NASDAQ:USAR) stock is trading higher on Thursday as the company is selected for U.S. Department of Energy funding under its “Critical Materials Innovation, Efficiency and Alternatives” program.
USA Rare Earth engages in mining, processing, and supplying rare earths.
The funding, which could total up to $19.3 million, aims to support the development of a pilot-scale rare earth element separations project, enhancing domestic processing capacity for materials essential to U.S. energy and defense supply chains.
USAR Stock Jumps On U.S. Department Of Energy Funding
The U.S. Department of Energy has chosen USA Rare Earth for potential funding to advance critical materials processing in the U.S.
The initiative underscores the importance of building a resilient supply chain for rare earth elements, which are vital for various sectors, including energy and defense.
USA Rare Earth reported first-quarter adjusted losses of 12 cents per share, which beat the analyst estimate for losses of 14 cents.
Quarterly revenue clocked in at $5.7 million, blowing past the $4.23 million Street estimate.
USAR Technical Analysis: Momentum And Key Moving Averages
The stock has shown strong momentum recently, with a 12-month performance of 159.80%.
Currently, the stock is trading 2.4% below its 20-day simple moving average (SMA) of $24.54, while it remains significantly above its 50-day SMA by 16.8%.
The 20-day exponential moving average (EMA) is at $23.49, indicating a slight bullish trend.
The primary momentum indicator, the Relative Strength Index (RSI), is currently at 48.24, suggesting a neutral position, indicating that the stock is neither overbought nor oversold at this time.
The level implies that there is potential for further movement in either direction, depending on market conditions.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $34.25. Recent analyst moves include:
- Wedbush: Outperform (Maintains Target to $35.00) (May 14)
- Cantor Fitzgerald: Overweight (Raises Target to $35.00) (May 14)
USAR Benzinga Edge: How The Stock Ranks On Momentum
Below is the Benzinga Edge scorecard for USA Rare Earth, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 94.13) — Stock is outperforming the broader market.
The Verdict: USA Rare Earth’s Benzinga Edge signal reveals a momentum-driven story, indicating strong performance relative to the market. This positive momentum, combined with the recent funding news, positions the company favorably for future growth.
USAR Price Action: USA Rare Earth shares were up 7.09% at $24.17 at the time of publication on Thursday, according to Benzinga Pro data.
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