Extending its 10.7% gain from last week, MP Materials (MP -8.59%) stock has roared into June. The trade war between the United States and China shows little indication that it's going to resolve anytime soon, motivating investors to click the buy button on the rare earths producer.
According to data provided by S&P Global Market Intelligence, shares of MP Materials have soared 19% from the close of trading last week through the end of yesterday's trading session.
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Trump and Xi are at odds -- and MP Materials stock is benefiting
From President Trump announcing new tariffs to President Xi restricting exports of rare earths, the trade war has seen a variety of salvos from both countries over the past few months. During this time, MP Materials stock has frequently responded positively as investors find the California-based producer of rare earths an appealing option since it represents an opportunity for the United States to shore up its supply of rare earths -- critical minerals found in the components used in electric vehicles, defense applications, and a variety of other items.
Investors have responded especially bullishly to MP Materials stock this week as the tension between Washington and Beijing escalated, highlighted by the claim that China hasn't eased restrictions on rare earth exports despite the 90-day truce that the two nations agreed upon.
Is it too late to buy MP Materials stock?
With shares of MP Materials rising 67% since the start of the year, it seems that the stock hasn't gotten a little ahead of itself. Characterizing itself as a "fully integrated rare earth producer with capabilities spanning the entire supply chain," MP Materials is a great consideration for growth investors though they may want to wait for a pullback before considering a position.
