5 Best Rare Earth Stocks to Buy in 2026

2. USA Rare Earth, Inc. (NASDAQ:USAR)

Number of Hedge Fund Holders: 39  

USA Rare Earth, Inc. (NASDAQ:USAR) is among the best rare earth stocks on this list.

TheFly reported on June 4 that Cantor Fitzgerald analyst Derek Soderberg increased the price target for USAR to $40 from $35 while maintaining an Overweight rating on the shares. The revised target followed the company’s agreements with the U.S. Department of Commerce, which provide access to potential funding of up to $1.6 billion through the Department’s CHIPS Program.

More recently, on June 15, USA Rare Earth, Inc. (NASDAQ:USAR) announced the commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, Colorado. The company expects initial separated oxide production to begin in the third quarter, positioning USA Rare Earth among the limited number of Western companies capable of producing commercial-quality heavy rare earth oxides. The facility is conducting parallel processing campaigns using Round Top ore, third-party mixed rare earth carbonate materials, and recycled rare earth magnet waste. Results from these efforts are expected to support the Round Top Definitive Feasibility Study and help guide the engineering plans for future processing facilities. The company aims to build a fully integrated rare earth supply chain connecting oxide production, metal and alloy manufacturing, and permanent magnet operations.

USA Rare Earth, Inc. (NASDAQ:USAR) is a critical minerals company building a U.S.-based mine-to-magnet supply chain for defense, aerospace, EV, and renewable energy industries.