Can MP Materials Stock Beat the Market in 2026?

As of Jan. 29, 2026, rare-earth miner and magnet shaper MP Materials (NYSE: MP) is beating the S&P 500 (SNPINDEX: ^GSPC). So acold successful 2026, MP has gained a small little than 11%, portion the S&P 500 scale has nudged astir 1% higher.

Last year, the quality was adjacent much pronounced. The S&P 500 finished 2025 astir 18% higher, portion MP Materials crushed the marketplace with a astir 224% gain.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Over a five-year period, an concern successful MP would person outperformed the aforesaid concern successful the S&P 500, arsenic the illustration beneath demonstrates.

What precisely is driving MP Materials, and tin it bushed the marketplace again successful 2026? Let's instrumentality a look.

Long communicative short, the U.S. has a rare-earth problem, and it's moving retired of clip to lick it. Like astir of the world, it inactive depends connected Chinese producers for the bulk of its rare-earth processing and high-performance magnets. That's enactment the U.S. authorities successful a thorny situation: Relations with China aren't precisely friendly, but without those magnets, a concerning fig of high-tech applications -- defence systems, electrical conveyance (EV) motors, electronics -- would grind to a halt.

Against this backdrop, MP Materials has emerged arsenic a cardinal subordinate successful the United States' effort to rebuild its home proviso of rare-earth elements. Indeed, it controls 1 of the world's richest deposits of rare-earth elements, the Mountain Pass excavation successful California. It's besides becoming 1 of the lone afloat integrated rare-earth companies that tin crook ore into high-performance magnets.

In 2025, MP's strategical value surged aft it inked a captious $400 cardinal woody with the Department of Defense. Then, connected the heels of that agreement, MP besides announced a $500 cardinal semipermanent woody with Apple to supply recycled magnets for its devices.

Both of these were immense votes of assurance for MP's future. They've besides helped displacement MP from a axenic mining concern (its magnetics conception earned virtually nary gross successful 2024) to a afloat integrated institution with a burgeoning magnetics limb (magnetics gross was astir $21.9 cardinal past quarter).

At the aforesaid time, MP Materials is not yet susceptible of producing magnets astatine scale. Indeed, portion it anticipates ramping up magnet accumulation from its Fort Worth installation (Independence) successful 2026, it's inactive a newcomer successful magnet accumulation and apt won't destruct the United States' dependence connected Chinese producers anytime soon.