USAR Stock Is Cooling Off. Is This the Right Time to Buy the Dip?[Stocks](https://moneymorning.com/category/article/stocks/) # USAR Stock Is Cooling Off. Is This the Right Time to Buy the Dip?  by Omor IE  October 21, 2025  Share it: **USA Rare Earth** ( [USAR](https://moneymorning.com/stocks/usar)) has been pulling back from its highs after a 175% rally from mid-September to mid-October. Investors grew optimistic that the Trump administration would take a significant stake in the company, as it did with **MP Materials** ( [MP](https://moneymorning.com/stocks/mp)) and a few other companies earlier in the year. The CEO of the company confirmed it was in “close communication” with the White House, potentially about a government investment in the company. A few days before that confirmation, the company acquired a British Less Common Metals (LCM) company for $100 million in cash plus 6.74 million shares.  ## **Should you buy USAR stock now?** The bull case mainly rests on the government taking a stake in the company. This has already been somewhat priced into the stock. The company is building a vertically integrated rare earth supply chain from mining to manufacturing that is independent of China. USA Rare Earth controls an 80% stake in the Round Top Heavy Rare Earth and Critical Minerals deposit, a 950-acre site near Sierra Blanca, Texas. The site is known to contain 15 of the 17 rare earth elements. Considering the company is already in talks with the government, I would expect a deal to go through where the government acquires a stake in [USAR](https://moneymorning.com/stocks/usar). That said, the stock is still too richly priced and can retest $20. I’d hold off on buying. Traders are still divided on the stock, with most believing it will remain below $30 by December. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Email This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) Share it: ### Popular Articles ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/03/01/why-acm-research-is-a-buy-despite-earnings/) March 1, 2026 ###### [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) February 27, 2026 ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) February 27, 2026 ###### [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) February 27, 2026 Notifications reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/)