MP Materials Corp. (NYSE:MP) stock climbed more than 9% Friday as critical minerals stocks rallied and the Materials sector led the broader market higher. The Nasdaq gained 0.31%, while the S&P 500 rose 0.42%.
According to Benzinga Pro, critical metals stocks traded higher after the U.S. Department of Energy recently selected seven projects aimed at expanding critical mineral processing, battery manufacturing and recycling capacity.
The latest funding round aligns with President Donald Trump’s “Unleashing American Energy” executive order.
Materials was the market’s strongest sector Friday, rising 2.09%. MP Materials significantly outperformed the group.
The move comes as Washington seeks to strengthen domestic critical mineral supply chains.
MP Materials produces rare earth materials and operates the Mountain Pass facility, the only rare earth mining and processing site of scale in North America.
Technical Analysis
MP moved above its 100-day and 200-day simple moving averages. The stock also traded well above its 20-day and 50-day averages.
Momentum indicators improved. The MACD was above its signal line, while the histogram remained positive. That suggests buying pressure is strengthening.
However, the longer-term trend is still recovering. The stock formed a “death cross” in July when its 50-day moving average fell below the 200-day average.
MP has also rebounded from its July low. Its 52-week range is $37.81 to $100.25.
Resistance sits near $61, while support is around $53.50. Holding above its longer-term moving averages could be important for sustaining the breakout.
Analyst Outlook
The stock carries a Buy consensus rating with an average price forecast of $71.79.
JPMorgan maintained an Overweight rating and lowered its price forecast to $60 on July 29. Needham maintained a Buy rating and cut its forecast to $73 on July 22. Barclays maintained an Overweight rating and lowered its forecast to $65 on July 16.
Benzinga Edge Rankings
The Benzinga Edge scorecard gives the stock a momentum score of 11.62, indicating weakness compared with the broader market.
Despite Friday’s rally, the score suggests the stock’s longer-term momentum remains in recovery mode. Investors may watch whether the stock can hold its recent breakout and build on the move.
Top ETF Exposure
MP Materials has exposure through several exchange-traded funds, including the VanEck Rare Earth and Strategic Metals ETF (NYSE:REMX), with a 6.27% weighting, and the Sprott Critical Materials ETF (NASDAQ:SETM), with a 3.19% weighting.
ETF inflows and outflows can create additional buying or selling pressure in heavily weighted holdings.
MP Materials Price Action
MP Stock: MP Materials shares were up 9.3% at $60.16 at the time of publication Friday, according to Benzinga Pro data.
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