5 Rare Earth Stocks to Buy with High Upside

4. USA Rare Earth Inc (NASDAQ:USAR)

Number of Hedge Fund Holders: 23

Stock’s Upside Potential: 90.13%

USA Rare Earth Inc (NASDAQ:USAR) is among the rare earth stocks to buy with high upside. On March 12, USA Rare Earth Inc (NASDAQ:USAR) announced that it had appointed Thomas Caulfield to its board of directors. Caulfield led semiconductor company GlobalFoundries (NASDAQ:GFS) as chief executive before transitioning to the executive chairman role. According to USA Rare Earth, Caulfield brings many years of experience in areas like engineering, management, and global operations.

Previously on March 9, USA Rare Earth announced an expansion of its leadership team following a funding agreement with the US federal government. It said that it had picked Valerie Ford Jacob as chief legal officer, Gregory Bowman as chief global policy officer, and J.B. Lowe as head of investor relations. The company said these appointments will help deepen its engagement with policymakers and investors. Back in January, USA Rare Earth Inc (NASDAQ:USAR) struck a $1.6 billion funding deal with the US government to support its rare-earths production.

On March 5, William Blair reiterated an Outperform rating on USA Rare Earth Inc, emphasizing the company’s Round Top rare earth project as a key driver of value. Analyst Neal Dingmann noted conservative assumptions on project timelines but highlighted that USAR trades at just 4.2x EV/EBITDAX versus a peer average of 7.8x, with potential to reach a 10x multiple supported by sector valuations. The firm set a fair value of $42 per share, implying 120% upside, underscoring the strategic importance of rare earth production in meeting future demand.

Oklahoma-based USA Rare Earth Inc (NASDAQ:USAR) is engaged in mining and manufacturing operations. It focuses on the production of rare-earth elements and permanent magnets. Its products have application in things like defense systems, electric cars, and renewable energy technologies. USA Rare Earth is one of those companies aiming to develop a domestic American supply chain of rare-earth materials.