Key Takeaways IREN increased its ARR target to $4.4 billion, up from the previous $3.7 billion goal.IREN's Dell agreement includes Blackwell systems for AI cloud deployments at Childress, TX. The company expects added GPU capacity to support revenue growth and large-scale AI workloads. IREN Limited (IREN - Free Report) is taking major steps to expand its AI cloud business. IREN has entered into a purchase agreement with Dell Technologies for air-cooled Blackwell systems that will support its previously announced five-year, $3.4 billion AI cloud contract with NVIDIA, slated to be deployed across IREN's data centers at the Childress, TX, campus, with commissioning expected to begin in early 2027.
IREN expects the Blackwell deployment to significantly increase annualized run-rate revenues (ARR). IREN now targets to hit $4.4 billion ARR. This marks a significant increase of $700 million from its prior $3.7 billion ARR target. The additional ARR is expected to come from bringing additional GPU capacity online and making it available to customers under existing and planned AI cloud deployments.
The deployment will be carried out at Childress using existing infrastructure, which should help speed up the rollout. Management continues to highlight "time-to-compute" as a key factor in the AI infrastructure market, where customers are seeking faster access to GPU capacity. IREN's ownership of power, data center infrastructure and operational capabilities should help it deploy systems more quickly and support large-scale AI workloads.
The agreement is valued at approximately $1.6 billion and includes GPUs, servers, storage, networking equipment, integration services and warranties. Further, IREN is pursuing GPU financing for the deployment, consistent with its approach to previous hardware purchases. If commissioning proceeds on schedule, the Blackwell deployment could become an important driver of IREN's revenue growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates revenue growth of around 48.1% and 250.3%, respectively.
IREN Stock Faces Stiff CompetitionIREN faces intense competition from Applied Digital (APLD - Free Report) and TeraWulf (WULF - Free Report) in the AI infrastructure space.
In May 2026, Applied Digital signed a 15-year lease agreement with a U.S.-based investment-grade hyperscale customer for Polaris Forge 3, APLD’s fourth AI data center campus. Polaris Forge 3 will provide 300 MW of IT capacity and will be supported by approximately 430 MW of utility power and will be used to support large-scale AI training and inference workloads. The agreement increases APLD's total contracted lease revenues across four AI Factory campuses to approximately $31 billion.
In May 2026, TeraWulf acquired the Muskie Data Campus, a new AI and high-performance computing (HPC) development site in Eastern Kentucky. The campus is expected to support more than 1 GW of data center capacity. The Muskie Data Campus becomes TeraWulf’s second major digital infrastructure campus in Kentucky, in addition to its 480 MW Justified Data campus in Hancock County. The acquisition expands the WULF’s development pipeline and increases its ability to support AI and HPC customers across different regions and power markets.
IREN’s Price Performance, Valuation & EstimatesShares of IREN have surged 71.8% in the year-to-date period against the Zacks Financial Miscellaneous Services industry’s decline of 5.9%.
IREN YTD Price Return Performance
Image Source: Zacks Investment Research
IREN shares are overvalued, as suggested by the Value Score of F. In terms of forward price/sales, IREN is trading at 9.12X compared with the industry’s 2.97X.
The Zacks Consensus Estimate for IREN’s bottom line in fiscal 2026 is pegged at a loss of 32 cents per share, revised downward over the past seven days. IREN reported earnings of 4 cents per share in fiscal 2025.
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Currently, IREN carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK, June 03, 2026 (GLOBE NEWSWIRE) -- IREN Limited (NASDAQ: IREN) (“IREN”) today announced the signing of a transmission connection agreement to support a planned 800MW data center campus in Bundey, South Australia.
Highlights
800MW data center campus in Bundey, South AustraliaHigh-voltage transmission connection secured into the utility’s substationOn track to commence energization from 2028Submarine fiber connectivity into key Asia-Pacific demand centersExpected to create over 200 ongoing skilled jobs, plus more than 500 during construction This marks IREN’s first announced Australian data center project and one of the largest in the Asia-Pacific region announced to date. The site is located approximately 78 miles northeast of Adelaide.
Asia-Pacific is among the world’s fastest-growing sources of AI demand, with a significant gap between projected demand and available infrastructure. South Australia's grid targets reaching 100% net renewable energy by 2027, and the site benefits from submarine fiber connectivity into major regional demand centers including Singapore, Indonesia, South Korea, and Japan.
The transmission connection agreement secures four 330kV feeder exits at the utility’s substation, expected to support up to 800MW without requiring network upgrades. IREN expects to commence early works and procurement in parallel with satisfaction of regulatory approvals and conditions under the transmission connection agreement.
Daniel Roberts, Co-Founder and Co-CEO of IREN, said:
“South Australia offers what AI infrastructure at scale requires: abundant clean energy, the connectivity to serve the APAC region, and a State Government that understands the opportunity and is acting on it.
“The Bundey campus is able to serve global and regional AI demand, as well as South Australia's own growing need for AI compute. We look forward to partnering with the Government of South Australia, local communities and industry to expand domestic access to AI infrastructure, support research and innovation, and help build the skills and jobs the AI economy requires.”
Peter Malinauskas, Premier of South Australia, said:
“Data centres are a significant economic opportunity, which can bring high-quality jobs, stronger renewable energy infrastructure, and new opportunities for regional communities.
“South Australia’s leadership in renewable energy, our record investment in higher education, our unashamed pro-jobs and pro-business outlook and appointing the nation’s first dedicated Minister for Artificial Intelligence means we are uniquely placed to seize the opportunities of AI.
“IREN’s proposed Bundey campus represents a significant investment in our state, with the potential to create hundreds of construction jobs, support long-term skilled roles, and strengthen South Australia’s position as a technology and innovation hub for the Asia-Pacific region.”
About IREN
IREN is a vertically integrated AI Cloud provider, delivering large-scale data centers and GPU clusters for AI training and inference. IREN’s platform is underpinned by its expansive portfolio of grid-connected land and power in renewable-rich regions across North America, Europe and APAC.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or IREN’s future financial or operating performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies, revenue targets, expectations relating to capital expenditures, anticipated hardware deliveries, receipt of planning, environmental, grid and other regulatory approvals and completion of applicable grid studies, pipeline capacity, geographic expansion initiatives, labor requirements, job and skills creation, economic benefits and trends we expect to affect our business. These statements often include words such as “anticipate,” “believe,” “may,” “can,” “should,” “could,” “might,” “plan,” “possible,” “project,” “strive,” “budget,” “forecast,” “expect,” “intend,” “target,” “will,” “estimate,” “predict,” “potential,” “continue,” “scheduled”. Forward-looking statements may also be made, verbally or in writing, by members of our Board or management team in connection with this news release.
These forward-looking statements are based on management’s current expectations and beliefs. These statements are neither promises nor guarantees, but involve and are subject to known and unknown risks, uncertainties and other important factors that may cause IREN’s actual results, performance or achievements to differ materially from any future results performance or achievements expressed or implied by the forward-looking statements, including IREN’s ability to successfully execute on its growth strategies and operating plans, achieve its targeted annualized run-rate revenue and operating capacity, continue to develop its existing data center sites, design and deploy direct-to-chip liquid cooling systems, and diversify and expand into the market for high performance computing solutions (including the market for cloud services and potential colocation services), along with other important factors discussed under the caption “Risk Factors” in IREN’s Annual Report on Form 10-K, filed with Securities and Exchange Commission (the “SEC”) on August 28, 2025 and our other filings with the SEC. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement included in this press release speaks only as of the date of such statement. Except as required by law, IREN disclaims any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
HIVE Digital Technologies NASDAQ: HIVE gave investors a report that, at first glance, supports its bitcoin mining to high-performance computing (HPC) pivot. For its full fiscal year 2026, the company generated revenue of $297.80 million, up 158% year over year. The gain was mostly due to an increase in Bitcoin mining hashrate and the first full year of contributions from its massive Paraguay expansion.
HIVE Digital Technologies Today
HIVE
HIVE Digital Technologies
$3.49 -0.01 (-0.17%)
As of 09:36 AM Eastern
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52-Week Range$1.60▼
$7.84Price Target$6.90
HIVE is not profitable yet, so revenue is the main story. But it wasn’t the only highlight in the report. The company’s gross operating margin expanded from 22% to 36%, and adjusted EBITDA reached $72.90 million.
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At first glance, investors were encouraged. HIVE was up 2.5% in early trading the morning after the report.
However, the earnings report also comes at a time when Bitcoin (BTC) is in a slump. In fact, in early June, the price of BTC dipped below $70,000. That’s well below the highs of late 2024.
More importantly, it’s uncomfortably close to what analysts estimate is the average breakeven cost for publicly listed Bitcoin miners.
The Bitcoin Problem Hasn't Gone AwayAny analysis of HIVE’s earnings report and future prospects has to include the impact of Bitcoin pricing. The company’s full-year 2026 financials were helped by a mostly friendly BTC price. For the full fiscal year, the average price of Bitcoin was $98,040.
However, in Q4, the BTC price slid into the mid-$70s, and it showed up in the quarterly numbers. HIVE’s adjusted EBITDA swung to negative $9 million, gross operating margin dropped to 24%, and Bitcoin mining revenue dropped 23.9% from the prior quarter.
To be clear, this isn’t a problem isolated to HIVE. The April 2024 halving cut block rewards in half, and the global network hashrate has continued to expand regardless, meaning every Bitcoin miner is competing for a shrinking pool of newly issued coins.
Data from CoinShares indicates the average cost to mine one Bitcoin among listed miners reached roughly $80,000 in late 2025. With Bitcoin currently hovering below $75,000 at the time of writing, the margin for error has essentially evaporated.
HIVE isn’t ignoring the issue. The company is working to diversify away from pure mining dependence. But the pace and scale of that pivot is where investors need to focus their scrutiny.
HIVE's AI Infrastructure Strategy Takes Center StageThe centerpiece of HIVE's growth story is its BUZZ High Performance Computing division and a stated pathway to $660 million in annualized recurring revenue (ARR) by year-end 2028. That would represent more than double the $297.8 million in total revenue the company just reported for its best year ever.
The plan rests heavily on a 320-megawatt AI "Gigafactory" announced in May 2026 in the Greater Toronto Area. This has been described as the largest planned AI infrastructure project under private ownership in Canada. At full build-out, the facility is designed to host more than 100,000 NVIDIA GPUs, and at peer-comparable Tier-III colocation pricing, the company estimates it would generate roughly $360 million in ARR on its own.
Add in the company’s GPU cloud business—which HIVE plans to scale from around 5,500 GPUs today to 11,000 by year-end 2026, targeting $140 million in AI Cloud ARR—and the math to $660 million starts to take shape.
Will $660 Million in ARR Translate Into Profits?But the larger question is, does $660 million in ARR mean HIVE will be profitable?
Not necessarily. The company already posted a GAAP net loss of $148.4 million in fiscal 2026—a year in which it grew revenue by 158%. Management correctly notes that approximately $221 million of that loss was non-cash, largely from depreciation on its rapidly expanding asset base. Strip those out, and the underlying cash generation looks healthier.
Plus, the GTA site alone carries a projected construction cost of CAD $3.5 billion, to be built out through 2027, a significant capital expenditure. G&A costs have already nearly doubled year over year as HIVE staffs up its operations. The path to $660 million in ARR is paved with significant capital requirements, and investors should not assume that revenue scale alone closes the profitability gap without seeing how the financing structure evolves.
That said, the earnings report showed that HIVE can win good-quality contracts. Its first NVIDIA NASDAQ: NVDA B200 GPU cluster, deployed at Bell Canada's Tier-III facility in Manitoba, went live at $2.90 per GPU-hour. That was 32% above the initial planning rate of $2.20. That pricing discipline, if repeatable, can have a meaningful impact on the company’s unit economics.
The Competition Shows What "Going All-In" Looks LikeHIVE is not operating in a vacuum. The broader Bitcoin mining sector has shifted decisively toward AI infrastructure, and some of HIVE's competitors are moving faster and with more institutional firepower.
IREN Limited NYSE: IREN is the most instructive comparison. Three years ago, it was a mid-tier Bitcoin miner; today, it has a $3.4 billion, five-year AI cloud contract with NVIDIA, a partnership with Microsoft Corp. NASDAQ: MSFT, and is targeting 480 megawatts of AI cloud capacity and 150,000 GPUs by the end of 2026. And the company’s doing all of that while actively winding down its Bitcoin mining business.
HIVE, by contrast, is running what it calls a "dual-engine" model. That is, it’s keeping its Bitcoin mining operations intact as a cash-flow generator while building out the AI side. There are real arguments for this approach: Bitcoin mining can return capital in one to three years and provides operating cash that funds the AI buildout without full dependence on external financing.
But the dual-engine model also means HIVE's story is harder to tell at a moment when investors are rewarding pure-play AI infrastructure narratives. As long as Bitcoin remains a meaningful portion of HIVE's revenue mix, its valuation will carry crypto-market volatility as a permanent feature.
Technical Momentum Meets Fundamental UncertaintyThe HIVE Digital Technologies analyst forecasts on MarketBeat give HIVE a consensus price target of $6.31. That’s an impressive 40% upside as of June 3 prices. However, that comes from just nine analysts and appears to be overweighted by a single $10 price target from Canaccord Genuity Group.
As for getting involved with HIVE, the chart structure has genuinely improved. The trend has reversed, momentum is strong, and the SMA has turned. But the stock is extended in the short term, and it's walking into overhead resistance from the November selloff. Earnings today—happening right at this technically charged level—make this a high-conviction moment in either direction.
Should You Invest $1,000 in HIVE Digital Technologies Right Now?Before you consider HIVE Digital Technologies, you'll want to hear this.
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While HIVE Digital Technologies currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Technical Momentum Reaches Top TierAccording to Benzinga Edge, the CIFR‘s stock momentum score surged week-on-week to reach a near-perfect 98.89. This proprietary ranking evaluates a stock’s relative strength based on its price movement patterns and volatility across multiple timeframes, ranking it as a percentile relative to other stocks.
The technical surge is backed by staggering price action. Shares are up 663.90% over the past year, complemented by a 53.99% leap over the last month alone.
Benzinga Edge Stock Rankings‘ price trend indicators confirm this broad strength, signaling positive upward trends across the short-term, medium-term, and long-term.
Bernstein Projects 22% Upside On AI PivotOn June 3, Bernstein SocGen Group initiated coverage on CIFR with an “Outperform” rating and a $32.00 price target, implying a projected 21.95% upside from the current level.
Bernstein highlights Cipher’s unique positioning to capitalize on explosive AI data center demand. The firm noted Cipher’s active multi-GW power development pipeline and a massive ~$24 billion order book backed by hyperscaler sponsorship.
Analysts emphasized that the company’s capital-light lease model will lead to a rapid AI-revenue ramp-up, allowing them to solve the critical “time to compute” bottleneck for major tech players.
With a planned 30 GW power portfolio and soaring market momentum, Cipher Digital is making a compelling case as the premier infrastructure play of 2026.
CIFR Stock Gains In 2026CIFR shares have risen 77.78% year-to-date and 40.85% in the six months. Meanwhile, the Nasdaq Composite index was up 15.57% YTD.
It has traded in a 52-week range of $3.29 to $28.62. The stock was lower by 3.20% in premarket on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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IREN Limited surges 60% in three months, but falling Bitcoin mining revenues, rising impairment charges and fierce AI data center competition cloud the outlook.
IREN Limited (NASDAQ:IREN) shares faced intense selling pressure on Thursday. This downward movement follows a sharp reversal from Wednesday’s gains, which were driven by a major network expansion announcement.
• IREN stock is taking a hit today. Why is IREN stock dropping?
Broader Cryptocurrency Market Sell-OffTransitioning Business Model ExposureDespite its active pivot toward artificial intelligence (AI), market experts emphasize that IREN remains highly sensitive to Bitcoin's price fluctuations.
The company operates data centers powered by renewable energy across Canada and the U.S. While IREN is converting its Bitcoin mining capacity for AI cloud infrastructure and working with leaders such as Microsoft, its historical ties to digital asset mining leave it exposed to crypto market volatility.
Current Short InterestThe stock’s technical setup shows shifting dynamics. In the latest reporting period, short interest in IREN decreased from 58.36 million to 50.94 million shares, leaving 14.72% of the company’s public float sold short. Based on its recent average daily trading volume of 64 million shares, short sellers would require approximately one day to cover their positions.
Bundey Campus Momentum PausesThursday’s decline stalls the momentum gained on Wednesday, when IREN announced a transmission connection agreement for a planned 800MW data center campus in Bundey, South Australia.
Highlighting the long-term vision, co-founder and co-CEO Daniel Roberts stated that South Australia offers the “clean energy, connectivity and policy support needed for AI infrastructure development at scale.” The project targets energization starting in 2028.
IREN Stock: Key Levels and Momentum IndicatorsThe bigger-picture trend is still pointed up: IREN is trading about 3.5% above its 20-day SMA at $58.78 and roughly 31.1% above its 200-day SMA at $46.39, which is classic pullback within an uptrend positioning. The 20-day SMA is also above the 50-day SMA, and the 50-day SMA is above the 200-day SMA, keeping the trend stack bullish.
From a structure standpoint, the stock is still working below its 52-week high of $76.87 after a recent swing high in May.
IREN Stock Price Activity: Iren shares were down 4.96% at $62.44 at the time of publication on Thursday, according to Benzinga Pro data.
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IREN Limited (IREN) has surged 254% since my initial coverage, outperforming the benchmark significantly. I maintain a Strong Buy rating, citing favorable catalysts and continued upside potential driven by the AI/data center pivot. Despite mixed historical earnings and Bitcoin volatility, I see no structural concerns undermining IREN's long-term growth thesis.
The global scramble for artificial intelligence (AI) dominance has created an unforeseen bottleneck, one of the most important constraints for AI infrastructure growth, alongside chip availability, data center capacity, and deployment timelines.
Hyperscale cloud providers and AI leaders are no longer just fighting for GPUs; they are in a desperate, worldwide hunt for raw, permitted electrical capacity. This frantic search for grid-connected real estate is revealing a new class of kingmakers: legacy Bitcoin miners who have spent years quietly accumulating a valuable and increasingly scarce asset for AI data centers: grid-connected power.
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More Than a Data Center, It's a Strategic Power MoatIREN Today
$51.14 -0.38 (-0.73%)
As of 09:36 AM Eastern
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52-Week Range$9.52▼
$76.87P/E Ratio107.53
Price Target$82.62
IREN Limited NASDAQ: IREN is aggressively capitalizing on this structural shift, executing a pivot from a volatile crypto miner into a vertically integrated AI Cloud infrastructure provider.
The latest move, a landmark transmission connection agreement for a planned 800MW data center campus in Bundey, South Australia, perfectly illustrates this strategy.
Announced on June 3, 2026, the deal is less about building another data center and more about monetizing a scarce resource.
The agreement secures four 330kV feeder exits directly from the local utility's substation, a critical advantage that enables the full 800MW capacity without requiring costly, time-consuming network upgrades. Situated near major submarine fiber routes connecting to key Asia-Pacific demand centers like Singapore and Japan, and located in a region targeting 100% net renewable energy by 2027, the Bundey campus is a strategically important expansion for IREN’s AI infrastructure platform. It provides a clear path to energization by 2028, offering hyperscalers a solution to their most pressing challenge: finding massive, stable power in geopolitically friendly regions.
Microsoft's Backing Unlocks an Ultra-Efficient Capital StackMicrosoft Today
$391.79 -5.57 (-1.40%)
As of 09:36 AM Eastern
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52-Week Range$356.28▼
$555.45Dividend Yield0.93%
P/E Ratio23.52
Price Target$561.20
Executing a pivot of this magnitude requires a sophisticated and robust capital structure.
IREN has demonstrated its ability to secure institutional backing, not as a Bitcoin miner, but as a critical infrastructure partner for Big Tech.
On June 1, 2026, IREN closed a $3.65 billion investment-grade GPU financing facility to support its AI Cloud contract with Microsoft NASDAQ: MSFT.
The facility's A and A(low) ratings from Fitch and DBRS, respectively, are anchored by Microsoft's offtake agreement, signaling that credit markets are underwriting IREN based on the quality of its contracted cash flows, not the price of Bitcoin.
The structure is exceptionally efficient. While the blended cost of debt is 6%, the deal includes significant customer prepayments from Microsoft, which act as a zero-interest funding source. This drags the all-in average financing cost for the required $5.81 billion in GPU capital expenditure down to an impressively low 3.31%.
Further bolstering its balance sheet, IREN recently secured a $3.0 billion convertible note offering due in 2033. This move provides a long-term runway to fund its massive capex pipeline, while a concurrent capped call hedge mitigates immediate equity dilution for existing shareholders. This is the type of disciplined financial engineering that signals a management team focused on long-term value creation through a period of intense capital deployment.
Trading a Crypto Multiple for a Utility PremiumThe market is rapidly re-rating IREN, recognizing the valuation arbitrage underway. This isn't just a narrative shift; it's a fundamental repricing of the business. Bitcoin miners historically trade at low multiples due to the volatility of their underlying asset, whereas stable infrastructure providers command premium valuations for their predictable, long-term cash flows. IREN is actively forcing the market to trade the former for the latter.
While the Q3 2026 earnings report showed a top-and-bottom-line miss driven by the legacy mining operations, this headline figure obscures the growth in the business segment that matters. AI Cloud Services revenue for IREN rose 142% quarter-over-quarter, growing from $7 million to $17 million. This provides the definitive proof-of-concept for the AI infrastructure pivot, demonstrating real demand and a clear path to the targeted $4.4 billion in annualized run-rate revenue, which IREN says is not fully contracted and depends on assumptions around GPU delivery, commissioning, utilization, and pricing.
Institutional money is taking notice and voting with capital. Recent filings show multiple institutional investors increasing their positions, all citing the AI infrastructure buildout as the chief reason. This institutional accumulation is putting immense pressure on short-sellers who have bet against the transition.
Exchange data reveals a significant short capitulation is already in progress, with short interest declining from a peak of 58.36 million shares to 50.94 million. This represents nearly 7.5 million shares covered as bears are forced to reconsider a thesis predicated on a business model that is rapidly becoming legacy.
A New Power Broker EmergesIREN Stock Forecast Today12-Month Stock Price Forecast:
$82.62
60.36% Upside
Moderate Buy
Based on 19 Analyst Ratings
Current Price$51.52High Forecast$105.00Average Forecast$82.62Low Forecast$46.00IREN Stock Forecast Details
IREN is no longer a simple proxy for the volatile crypto cycle. IREN is a hyperscale landlord hoarding the AI economy's most critical asset.
The strategic land grab in Australia, backed by billions in investment-grade financing and validated by exponential growth in its AI Cloud segment, signals a fundamental transformation.
Investors focused on the structural buildout of the AI economy may find the transition from hashrate to hyperscale a compelling case study in strategic asset monetization.
The execution risk associated with such a large-scale capital deployment remains a key factor to monitor, but for those with a long-term view, IREN appears poised to become a key power broker in the new AI economy.
Should You Invest $1,000 in IREN Right Now?Before you consider IREN, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and IREN wasn't on the list.
While IREN currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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MarketBeat's analysts have just released their top five short plays for June 2026. Learn which stocks have the most short interest and how to trade them. Click the link to see which companies made the list.
Strategy, Coinbase, Circle and Robinhood Lead Crypto Stocks Rally Amid Bitcoin Rebound Bitcoin Rebound Sparks Rally Across Crypto Stocks After Brutal Selloff Summary
Crypto-linked stocks advanced after Bitcoin rebounded from a sharp selloff and regained momentum above key support levels
Crypto-linked stocks climbed on Monday as Bitcoin steadied after a sharp selloff, with Strategy MSTR , Coinbase Global COIN , Robinhood Markets HOOD , Hut 8 (HUT), MARA Holdings (MARA), Circle Internet Group CRCL , Galaxy Digital (GLXY), Bullish (BLSH) and Iren (IREN) all moving higher.
Bitcoin recovered above $60,000 over the weekend and traded near $63,000 in early Monday action, after briefly slipping below that level on Friday. Ether also gained, adding to a modest rebound across digital assets.
The bounce came after one of the roughest weeks for crypto in more than two years, with heavy ETF outflows and a broad risk-off tone weighing on sentiment. Strategy chairman Michael Saylor also hinted at additional bitcoin purchases, which helped support the tone.
Even so, some analysts said the recovery may be fragile if bitcoin cannot hold recent support levels. They said the market still needs clearer signs that institutional selling is easing before calling the pullback over.
Responding to a prominent Bitcoin (CRYPTO: BTC) investor’s anecdote about a quantum firm’s impossible mining pitch, Shkreli bluntly declared, “They were lying.”
The ‘Trivial’ Bitcoin PitchThe controversy ignited over a social media post from Mike Alfred, a value equity investor who sits on the board of Bitcoin mining company IREN Ltd. (NASDAQ:IREN).
Alfred shared that a major quantum company advised him to stop investing in crypto mining, claiming their technology made it “relatively trivial” to mine all remaining unmined Bitcoin in a mere 48 hours.
Shkreli explicitly named IONQ as the culprit behind the outlandish claim. “IONQ said this to a lot of people and they were lying,” Shkreli posted on X.
When a user expressed disappointment that he didn’t reiterate his usual call to short the stock, Shkreli casually responded, “I mean, yeah, of course.”
A History Of ‘Crazy’ StatementsShkreli has consistently referred to the quantum hardware developer as “one of the best shorts” of his career, repeatedly accusing the company and its peers of relying on revenue gimmicks.
Adding fuel to his short thesis, critics have pointed out that Chapman previously liquidated nearly 80% of his beneficial stake when the stock’s valuation peaked.
Reality Check On Quantum HypeThe notion that any current quantum computer could mine the remaining Bitcoin supply in two days is widely considered a massive technological stretch.
How Has IONQ Performed In 2026?Shares of IONQ have advanced by 39.96% year-to-date. It closed 10.60% higher at $62.80 apiece on Monday, and it was 2.07% higher in premarket on Tuesday.
Over the last month, IONQ stock was up 27.57%, and it rose 15.53% over the last six months and 60.94% over the year. Benzinga’s Edge Stock Rankings indicate that IONQ maintains a strong price trend in the short, long, and medium terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Iren (IREN 0.17%) is racing to become a major AI infrastructure player, with Blackwell systems, data center capacity, and multibillion-dollar revenue targets reshaping the bull case. The upside could be powerful if execution stays on track, but the stock's current valuation suggests investors may already be betting heavily on success.
*Stock prices used were the market prices of June 1, 2026. The video was published on June 8, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Key Takeaways IREN plans an 800MW data center campus in South Australia, with energization starting in 2028.The Bundey site connects to major Asian markets through submarine fiber links and regional connectivity.IREN aims to address rising APAC AI demand with additional computing capacity and transmission access. IREN Limited (IREN - Free Report) recently announced plans to develop an 800-megawatt data center campus in Bundey, South Australia. The project is the company's first announced data center campus in Australia and adds a new growth market to its AI infrastructure platform. IREN has secured a transmission connection agreement that provides access to four 330kV feeder exits at the utility substation. IREN expects this agreement to support up to 800 megawatts of capacity without requiring network upgrades. Energization of the Australia campus is expected to begin in 2028.
The project is aimed at serving growing AI infrastructure demand across the Asia-Pacific region. IREN sees Asia-Pacific as one of the fastest-growing sources of AI demand globally, where available AI infrastructure in the region remains limited. IREN believes that the region's large population, growing AI adoption and shortage of computing infrastructure create an opportunity to develop additional AI capacity closer to customers in the region.
A key feature of the Bundey campus is its connectivity to major Asian markets. The site has submarine fiber links to Singapore, Indonesia, South Korea and Japan. These countries are important markets for cloud computing and AI workloads. Management expects Australia to serve as a regional hub for AI infrastructure because it combines power availability with connectivity to major Asia-Pacific demand centers.
The company expects the Bundley project to create more than 500 construction jobs and more than 200 ongoing skilled jobs once operational. As of now, the campus remains several years away from energization and securing transmission access will be an important step because access to power is one of the biggest constraints for large-scale AI infrastructure projects. The above-mentioned factors show how the project provides IREN with an additional platform to support future growth and help meet rising AI demand in the Asia-Pacific region.
IREN Stock Faces Stiff CompetitionIREN faces intense competition from Applied Digital (APLD - Free Report) and TeraWulf (WULF - Free Report) in the AI infrastructure space.
In May 2026, Applied Digital signed a 15-year lease agreement with a U.S.-based investment-grade hyperscale customer for Polaris Forge 3, APLD’s fourth AI data center campus. Polaris Forge 3 will provide 300 MW of IT capacity and will be supported by approximately 430 MW of utility power, and will be used to support large-scale AI training and inference workloads. The agreement increases APLD's total contracted lease revenues across four AI Factory campuses to approximately $31 billion.
In May 2026, TeraWulf acquired the Muskie Data Campus, a new AI and high-performance computing (HPC) development site in Eastern Kentucky. The campus is expected to support more than 1 GW of data center capacity. The Muskie Data Campus becomes TeraWulf’s second major digital infrastructure campus in Kentucky, in addition to its 480 MW Justified Data campus in Hancock County. The acquisition expands WULF’s development pipeline and increases its ability to support AI and HPC customers across different regions and power markets.
IREN’s Price Performance, Valuation & EstimatesShares of IREN have surged 56.2% in the year-to-date period against the Zacks Financial Miscellaneous Services industry’s decline of 11.9%.
IREN YTD Price Return Performance
Image Source: Zacks Investment Research
IREN shares are overvalued, as suggested by the Value Score of F. In terms of forward price/sales, IREN is trading at 8.37X compared with the industry’s 2.81X.
The Zacks Consensus Estimate for IREN’s bottom line in fiscal 2026 is pegged at a loss of 32 cents per share, revised downward over the past 30 days. IREN reported earnings of 4 cents per share in fiscal 2025.
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Currently, IREN carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IREN stock is among today’s weakest performers. What’s behind IREN decline? April CPI came in at 3.8% year over year, and traders fear another firm reading could push Federal Reserve rate cuts further out. Higher for longer borrowing costs tend to hit capital intensive companies like IREN the hardest.
Sentiment weakened further after President Donald Trump warned of retaliation following a U.S. helicopter being shot down over the Strait of Hormuz. The possibility of rising conflict in a key oil route raised concerns about an oil price spike that could feed back into inflation and complicate the Fed's path.
With CPI data less than a day away and geopolitical risks rising, investors showed little interest in holding risk assets.
Market Still Treats IREN Like A Crypto ProxyIREN formally pivoted away from Bitcoin mining last year. The company paused further mining expansion and shifted its focus toward AI cloud and high-performance computing data centers. That transition means IREN is far less exposed to Bitcoin price swings than it once was.
The market has not fully adjusted to that shift. The stock still trades like a crypto proxy even though the business is becoming an AI infrastructure provider. For investors this disconnect can be a risk or an opportunity depending on how quickly sentiment catches up to the company's new direction.
IREN Stock: Key Levels To WatchFrom a trend perspective, IREN is still in an uptrend on the intermediate timeframe, but Tuesday's drop is pushing it into a more "decision-point" zone. The stock is trading 7.6% below its 20-day SMA at $58.60, while still holding 7.6% above its 50-day SMA at $50.32 and 15.3% above its 200-day SMA at $46.97, which keeps the bigger structure constructive.
Momentum is best framed by RSI, which sits at 52.46, which is neutral, and consistent with a stock that's cooling off rather than breaking down. RSI measures how stretched a move is, and a mid-range reading suggests sellers aren't fully in control even as price pulls back from recent highs.
The moving-average backdrop remains supportive: the 20-day SMA is above the 50-day SMA, and the golden cross in May still signals a longer-term bullish bias. That said, the stock's recent swing high in June and the earlier overbought RSI condition in May help explain why rallies can face faster profit-taking now.
Key levels are getting clearer as price compresses between short-term overhead supply and longer-term support:
Key Resistance: $59.00 — a nearby round-number area that also lines up with the 20-day moving-average zone where rebounds can stall Key Support: $46.00 — a nearby floor near the 200-day SMA of $46.97, a level long-term buyers often defend IREN Shares Are DippingIREN Price Action: Iren shares were down 8.35% at $54.25 at the time of publication on Tuesday, according to Benzinga Pro.
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Almost six months ago, our December 2025 piece Analysts See Triple-Digit Revenue Growth in 2026 for These 3 AI Infrastructure Stocks argued that three names sat in the sweet spot of the AI buildout: Nebius (NASDAQ: NBIS | NBIS Price Prediction) with an annual recurring revenue (ARR) ramp implying up to roughly 1,600% growth, IREN (NASDAQ: IREN) targeting over 500% growth, and CoreWeave (NASDAQ: CRWV) with up to 138% growth. The thesis was that hyperscaler graphics processing unit (GPU) demand was outrunning supply, and these three would convert contracted power into booked revenue faster than their peers.
The mid-year report card shows mixed results. One name blew past the bar, one cleared the growth target despite widening losses, and one missed the headline number while quietly rebuilding the business. We graded each on stock performance and whether the company is executing toward the revenue and ARR run-rate that justified the call.
3. IREN: Thesis on the Clock Data center operator IREN is the most uncomfortable name on the scorecard. Q3 FY2026 revenue came in at $144.80 million, a 2.2% year-over-year decline that missed consensus estimates. The triple-digit growth claim did not hold.
Bitcoin mining revenue fell to $111.20 million as hardware was decommissioned, while AI Cloud Services climbed from $7.30 million to $17.30 million to $33.60 million across three quarters. Management anchors its outlook to a $3.70 billion annualized run-rate by year-end 2026, backed by a $3.40 billion five-year Nvidia AI Cloud contract and a $9.70 billion Microsoft partnership.
Shares trade at $54.02, up 43.0% year to date but down 18.9% in the past week. The 247Factor model flags a base-case target of $113.72 with 110.52% upside, though the 4.23 beta reflects volatility. The execution question is whether AI Cloud revenue can offset the mining cliff fast enough to validate that ARR target.
2. CoreWeave: Thesis Intact, Bill Coming Due Cloud computing company CoreWeave delivered on the growth promise. Q1 2026 revenue hit $2.08 billion, up 111.7% year over year and 5.8% above the $1.96 billion consensus. Revenue backlog reached $99.4 billion, including a $21 billion Meta commitment, and active power surpassed 1 GW with a path to more than 8 GW by 2030.
Net loss widened to $740 million, interest expense doubled to $536 million, and capex hit $7.695 billion in a single quarter. Total liabilities reached $50.814 billion, against $55.573 billion in assets. Forward EPS came in at −$1.40, so traditional P/E math does not apply.
The stock reflects ambivalence: trading at $98.45, up 37.5% year to date but down 39.3% over the past year. Nearly two-thirds of surveyed analysts recommend buying shares, and they have a $140.18 mean target price. CEO Michael Intrator called it “the strongest bookings quarter in CoreWeave’s history.” The key question is whether operating leverage can outpace interest expense before the next refinancing window.
1. Nebius: Thesis Confirmed Amsterdam-based Nebius is the clear winner. Q1 2026 revenue reached $399.0 million, up 684% year over year, with the AI Cloud segment producing $389.7 million at 841% year-over-year growth. EPS came in at $2.11, and adjusted EBITDA flipped positive to $129.5 million. Cost of revenue compressed from 49% to 26%.
Management reaffirmed FY2026 revenue guidance of $3.0 billion to $3.4 billion, an ARR target of $7.0 billion to $9.0 billion, and more than 4 GW contracted power by year-end. Remaining performance obligations stand at $33.59 billion, anchored by a $27 billion five-year Meta agreement and a $2 billion Nvidia pre-funded warrant investment.
Shares trade at $220.12, up 163.0% year to date and 318.6% over one year, even after a 15.5% one-week pullback. The 247Factor model carries a $280.62 base-case target with 27.48% upside and 0.9 confidence. CEO Arkady Volozh said: “Our capacity footprint is expanding rapidly, our full-stack cloud platform is world-class from the infrastructure layer all the way up to our inference and agentic capabilities.” The execution question is narrower: can the Pennsylvania, Finland, and Missouri sites energize on schedule to feed the Meta and Microsoft ramps?
One titan is soaring with 684% growth while another stares down a $50 billion debt mountain. This is the brutal reality behind the AI infrastructure hype. The Scorecard Verdict The original premise required triple-digit revenue growth backed by credible run-rate progress. Nebius cleared both bars, with margin expansion as a bonus. CoreWeave delivered the growth and a $99.4 billion backlog, but the funding stack is the active risk. IREN missed the headline number because mining is being deliberately torn down, leaving the AI Cloud ramp to prove itself by year-end. One thesis is confirmed, one is intact but on a debt clock, and one still needs the second-half earnings report to justify the call.
Data center operator Iren (IREN 0.17%) is positioning itself to be a leader of the artificial intelligence (AI) boom. It's inking some impressive deals for its cloud infrastructure, including a five-year $3.4 billion deal it signed last month with Nvidia (NVDA +0.65%).
That deal covers 60 megawatts (MW) worth of computing capacity in Iren's Childress, Texas, data center. The terms of that deal could also be helpful for assessing Iren's newly announced 800 MW site in Australia, especially in the broader context of how quickly Iren has added more energy capacity.
Image source: Getty Images
Iren is adding gigawatts faster than anyone else The new Australian data center campus boosts Iren's total pipeline to 5.8 gigawatts (GW) of infrastructure that will eventually be made available for tech giants and others. Iren's 1.4 GW Sweetwater 1 facility was energized earlier this year, and the Australian site is expected to be energized in 2028.
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Nor was that the only site Iren has added this year. The company announced in February that it acquired a 1.6 GW site in Oklahoma. Combine that with a 490 MW acquisition in Europe, and Iren has doubled the amount of gigawatts in its pipeline in less than six months. Iren closed 2025 with 2.9 GW of grid-connected, contracted power, and now has a 5.8 GW portfolio.
Iren's three deals so far this year have been for sites with 1.6 GW, 800 MW, and 490 MW. These aren't small deals, and now that Iren has sites in Europe and Australia, it should be easier to gain share in those markets. The trend suggests that Iren will have even more energy capacity contracted by the end of the year.
Why loading up on gigawatts matters Looking at Iren's deal with Nvidia will shed some light on why gigawatts matter. That deal secured an annual rate of $11.33 million per megawatt for five years. Assuming that rate holds across a 5.8 GW portfolio, Iren is looking at $65.7 billion per year in recurring revenue.
More gigawatts increases Iren's earnings potential, especially as it energizes more sites. Tech giants have been scrambling to get access to more computing power for AI, and Iren has already established itself by serving some of the largest companies in the industry. It may also get more difficult to secure energy in the future due to competition, activism, and the lengthy timetables for building new generation sources.
Commentary from Iren CEO Daniel Roberts suggests the company is still aggressively building out its gigawatt pipeline. When announcing the acquisition of European data center provider Nostrum Group, Roberts said that the acquisition "supports the next phase of growth."
Converting gigawatts into revenue The math for the company to hit $65.7 billion in annual recurring revenue adds up, but the question of how effectively Iren will be able to convert the potential from those contracted power supplies into the tangible reality of operating, revenue-generating data centers is the elephant in the room.
Management recently raised its target annual revenue run rate from $3.7 billion to $4.4 billion, so the company is making progress.
"Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything," Roberts said recently when raising the annual recurring revenue target.
Not only will it be a tall order to turn all that energy capacity into revenue, but it also costs a lot of money to construct data centers and buy the necessary AI accelerators and other chips. For instance, Iren recently closed a $3 billion convertible note offering and $3.65 billion in GPU financing.
Banks are willing to give Iren competitive interest rates and terms on its debt, signaling that there is enough trust from financial institutions that Iren can translate gigawatts into scalable revenue. Iren will eventually announce bigger deals due to the high demand for AI compute and how much capacity the company has already energized.
Investors will also have to wait patiently for margins to improve. However, once its AI data centers are generating sizable profits, Iren will be positioned to benefit due to its focus on accumulating as much capacity as possible.
Key Takeaways USAR commissioned Phase 1a of its Oklahoma magnet line to begin NdFeB magnet orders in Q2 2026.USAR's SG&A jumped to $21.2M in Q1 2026 from $7M on legal, hiring and consulting costs.USA Rare Earth posted a 34-cent Q1 loss as R&D rose to $14.2M and product costs neared revenues. USA Rare Earth, Inc. (USAR - Free Report) remains in the early stages of commercial growth and continues to face losses as operations scale. While revenue generation has started following the acquisition of Less Common Metals, higher operating expenses tied to expansion, acquisitions and workforce growth are pressuring the company’s profitability.
In the first quarter of 2026, USAR’s cost of product revenues was $5.59 million, which was 98.1% of total revenues. In the same period, its selling, general and administrative expenses surged to $21.2 million from $7 million in the year-ago quarter due to a rise in legal & consulting costs, higher headcount & recruiting fees, and other costs.
USA Rare Earth’s research and development expenses rose to $14.2 million compared with $1.7 million reported in the year-ago quarter due to an increase in higher employee-related and development costs. As a result, the company reported a loss of 34 cents per share for the quarter.
However, USAR has achieved a key milestone with the commissioning of Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma. The development enables USAR to start fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.
Although USA Rare Earth is making progress in scaling operations, persistent cost pressures and ongoing losses remain key concerns. The company’s ability to balance growth investments with improving revenues and cost discipline will be key to overcoming profitability pressures.
USAR’s Peer PerformanceAmong its major peers, NioCorp Developments Ltd. (NB - Free Report) is facing cost pressure. In the third quarter of fiscal 2026, NioCorp’s total operating expenses increased significantly on a year-over-year basis due to expenses incurred for the advancement of the Elk Creek Project. Rising costs and expenses, if not controlled, might affect NioCorp Developments’ margin performance.
Its another peer, Rio Tinto Group (RIO - Free Report) , is benefiting from rising copper production, driven by strong operational performance across its assets. However, weather-related disruptions earlier in 2025 affected Rio Tinto’s iron ore volumes. Planned maintenance activities at some copper mining projects temporarily reduced Rio Tinto’s output in 2025, while cost pressures from inflation and higher sustaining capital spending impacted margins.
USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 232.9% in the past year compared with the industry’s growth of 55.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 85.07X against the industry’s average of 15.76X. USA Rare Earth has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Key Takeaways USAR commissioned Phase 1a in Oklahoma, targeting 600 metric tons of NdFeB magnets by 2026.MP lifted Q1 revenues 49% to $90.6M as NdPr and rare-earth oxide output hit records.USAR secured grants, financing and federal support while expansion costs pressured results. USA Rare Earth, Inc. (USAR - Free Report) and MP Materials (MP - Free Report) are two prominent players operating in the Zacks Mining - Miscellaneous industry. Both companies are based in the US and as peers, each is engaged in the extraction and development of important minerals that support electrification, clean energy technologies and advanced manufacturing.
Both companies operate in highly capital-intensive mining sectors that require substantial upfront investments, extended project timelines and complex regulatory approvals. Their businesses are also closely tied to large-scale infrastructure development and the adoption of advanced processing technologies. Accelerating demand for critical minerals and metals used in electric vehicles, battery storage and renewable energy systems is opening up significant long-term growth opportunities. However, the ongoing Iran-Israel conflict has heightened supply-side concerns by disrupting global trade flows and impacting energy markets, leading to tighter commodity supplies and increased price volatility.
The Case for USARUSAR has reached a major milestone with the commissioning of Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma, enabling it to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.
The commissioning demonstrates USAR’s ability to execute a complex, multi-step manufacturing process at commercial scale. The Stillwater facility converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, Stillwater is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.
USAR is also strengthening its long-term growth platform through strategic investments and partnerships. In May 2026, the company secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.
To support expansion, USAR reinforced its balance sheet through financing and acquisitions. In January 2026, the company completed a $1.5 billion PIPE financing to fund upgrades at the Stillwater facility, expand magnet finishing operations and complete Line 1b, increasing planned NdFeB magnet production capacity to roughly 1,200 metric tons. In March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. In addition, the November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.
USAR also secured federal support in January 2026 through a non-binding Letter of Intent with the U.S. Department of Commerce and collaboration with the U.S. Department of Energy. Under the CHIPS Program, the Department of Commerce proposed $277 million in federal funding alongside a $1.3 billion senior secured loan, representing a potential total support package of $1.6 billion.
Despite these growth catalysts, USAR remains in the early stages of commercialization and continues to report losses as it scales operations. Although revenue generation began following the acquisition of Less Common Metals, rising operating costs tied to expansion, acquisitions and workforce growth continue to pressure profitability.
In first-quarter 2026, selling, general and administrative expenses rose to $21.2 million from $7 million a year earlier, driven by higher legal and consulting expenses, increased headcount, recruiting costs and other operational spending. Research and development expenses also climbed sharply to $14.2 million from $1.7 million in the prior-year quarter, reflecting higher employee-related expenses and development investments.
The Case for MP MaterialsMP Materials operates the Mountain Pass mine and processing facility, producing refined rare-earth products, concentrates and related materials. The company also owns the Independence facility in Fort Worth, TX, where it produces magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.
In 2025, MP achieved several strategic milestones, including a long-term agreement to supply U.S.-made recycled rare-earth magnets to Apple and a public-private partnership with the U.S. Department of War (DoW) to accelerate the development of a domestic magnet supply chain. Supported by government incentives, the company is constructing its second domestic magnet manufacturing site, the 10X Facility in Northlake, TX, which is expected to expand total U.S. magnet production capacity to 10,000 metric tons. At the same time, MP continues to scale operations at Independence, while commissioning activities for heavy rare earth separation are expected to begin soon at Mountain Pass.
Operational performance remained strong in the first quarter of 2026 as the company continued expanding production and downstream capabilities. NdPr production reached a record 917 metric tons, increasing 63% year over year due to higher separated-product output. Rare-earth oxide concentrate production also hit a quarterly record of 12,983 metric tons, up 6% year over year, supported by improved recoveries and stronger operating efficiencies.
Total company revenues rose 49% year over year to $90.6 million in the quarter, supported by stronger performance in both the Materials and Magnetics segments. MP also recognized $42.3 million in income related to its price protection agreement with the DoW.
However, profitability remains under pressure as the company transitions toward higher-value separated rare-earth products and magnetic materials. Cost of sales increased 52% in the quarter, while SG&A expenses rose 39%. Start-up costs surged more than 500% due to magnet production and chlor-alkali facility ramp-ups, while advanced project and development expenses climbed 302%.
MP Materials reported an operating loss of $24 million in the first quarter of 2026, an improvement from a loss of $34.8 million in the prior-year quarter. The company also reported adjusted earnings of three cents per share compared with an adjusted loss of 12 cents per share a year earlier. Looking ahead, management expects cost pressures to persist as production ramps up further, with start-up expenses likely to remain elevated in the coming quarters.
How Does the Zacks Consensus Estimate Compare for USAR & MP?The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 33 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 32 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MP’s 2026 bottom line is pegged at 16 cents per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $1.06 per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & MPIn the past six months, USAR’s shares have surged 122.1%, while MP stock has gained 12.3%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 81.92X, while MP Materials’ forward earnings multiple sits at 193.29X.
Image Source: Zacks Investment Research
Final TakeUSAR recently commissioned Phase 1a of its Stillwater magnet production facility and strengthened its long-term growth strategy through acquisitions, financing, government support and expansion plans to build a domestic rare earth supply chain. However, despite starting to generate revenues, the company continues to face near-term profitability pressure from rising operating and research & development expenses tied to commercialization and expansion.
MP Materials benefits from integrated operations, expanding production capacity and strategic partnerships with Apple and the U.S. government, positioning it well to capitalize on the growing domestic rare-earth supply chain. However, near-term profitability may remain under pressure due to elevated operating and expansion-related costs.
Given these factors, MP seems a better pick for investors than USAR currently. While MP Materials carries a Zacks Rank #3 (Hold) at present, USA Rare Earth has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
May 28, 2026 16:30 ET | Source: USA Rare Earth, Inc.
STILLWATER, Okla., May 28, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (“USAR” or the “Company”), a rare earth, critical minerals and advanced materials company, today announced that Gregory Bowman, Chief Global Policy Officer, has been appointed to the U.S. Department of War’s newly established Science, Technology and Innovation Board (STIB). The STIB is charged with solving complex national security problems for the Secretary of War, the Deputy Secretary of War, the Under Secretaries of War, the Chairman and Vice Chairman of the Joint Chiefs of Staff, and other senior Department officials.
The STIB, which was established in early 2026 following the merger of the Defense Science Board and the Defense Innovation Board, is designed to accelerate the delivery of breakthrough technologies and capabilities to the American warfighter. Mr. Bowman joins a select group of 33 members drawn from government, industry, academia, and the research community.
“Greg’s appointment to the STIB is a recognition of his standing as one of the nation’s foremost voices on national security policy and the defense industrial base,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “In an era of intensifying geopolitical threats, the nation is well served when leaders of Greg’s experience lend their judgment to its most pressing security challenges. We congratulate him on this honor and are proud to count him among our colleagues.”
“I am honored to join the Science, Technology and Innovation Board at such a consequential moment for American defense and industrial policy,” said Mr. Bowman. “Strengthening how the nation develops and fields breakthrough technologies and secures critical supply chains is among the most urgent challenges we face. I look forward to supporting the board’s vital mission of delivering decisive capabilities to the American warfighter.”
Disclosure: Mr. Bowman serves on the STIB strictly in his personal capacity and in adherence with all applicable statutory and regulatory requirements. His views and contributions to the STIB are his own. His appointment to this position does not constitute, and should not be construed as, an endorsement of USA Rare Earth or its products, services, or commercial interests by the Department of War, the STIB, or the U.S. Government in any way.
About Greg Bowman
Greg Bowman serves as Chief Global Policy Officer at USA Rare Earth, where he leads the Company’s public policy, corporate affairs, government relations, and strategic communications efforts.
Mr. Bowman brings decades of experience across national security policy, legislation, global strategy, and complex infrastructure and technology programs. Prior to joining USA Rare Earth, he served in senior leadership roles at Siemens Government Technologies, including Chief Corporate Strategy Officer and Senior Vice President, National Security Solutions. Before Siemens, Mr. Bowman served for 26 years in the U.S. Army in senior leadership and legal roles, retiring at the rank of Colonel.
Mr. Bowman received a bachelor’s degree from Longwood University in sociology and pre-law, and his J.D. from the University of Virginia School of Law. He also earned a Master of Military Law and Government Contracting from the U.S. Army Judge Advocate General’s Legal Center & School, and a Master of Military Arts and Sciences from the U.S. Army Command and General Staff College. He previously served on the U.S. Army Science Board and the U.S. Department of Defense Business Board, and currently serves on the Founding Council of PRISM, the Strategic Council of the Silverado Policy Accelerator, and the Board of Directors of Hope for the Warriors.
About USA Rare Earth
USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the SVG transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, data center, physical AI, autonomous systems, mobility, healthcare and industrial sectors.
For more information, visit www.usare.com.
USAR Investor Contact:
J.B. Lowe, CFA
VP, Head of Investor Relations [email protected]
USAR Media Relations Contact:
Collected Strategies [email protected]
America’s Rare Earth Champions ClashAccording to a complaint filed in Texas, MP Materials alleges that USA Rare Earth unlawfully obtained technology used to improve the performance of permanent magnets. The technology is a key component in products ranging from smartphones and consumer electronics to military equipment and electric vehicles.
The company claims a former employee disclosed proprietary information after joining USA Rare Earth last year.
“USA Rare Earth has repeatedly failed to meet its commercial and performance targets and is now resorting to stealing technology to dig itself out,” MP Materials alleged in the filing, Financial Times reported.
USA Rare Earth pushed back, saying MP Materials had “misrepresented our company, our culture, and our people” and that it would defend itself vigorously.
The dispute arrives at an awkward moment for Washington’s effort to build a domestic alternative to China’s rare-earth ecosystem.
A Supply Chain Built To Challenge ChinaBoth companies occupy important positions in the government’s critical minerals strategy.
The broader goal is clear: reduce America’s dependence on China, which remains the dominant force across much of the global rare-earth supply chain.
The Stakes Extend Beyond A LawsuitThe timing of the dispute highlights how competitive the race to build a domestic rare-earth industry has become.
As Western governments scramble to secure supplies of critical minerals, companies are increasingly racing to establish businesses that span mining, processing, and magnet manufacturing. Being among the first to build that integrated supply chain could unlock valuable commercial partnerships and government support.
MP Materials has already signed a magnet supply agreement with General Motors Co (NYSE:GM), while USA Rare Earth is working toward commercial-scale mining and manufacturing operations later this decade.
For investors, the lawsuit represents more than a legal fight between two companies.
It is a reminder that America’s effort to loosen China’s grip on rare earths is still in its early stages—and that some of the fiercest battles may be taking place between domestic rivals, not overseas competitors.
Photo: RHJPhtotos / Shutterstock
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This planned investment would support the accelerated growth of the French separation, metal, alloy and magnet making ecosystem June 01, 2026 03:00 ET | Source: USA Rare Earth, Inc.
PARIS, June 01, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (the “Company”), today announced that it intends to expand its metal, alloy and magnet making investment in France. This would build upon the Company’s previously announced French initiatives, which include a Less Common Metals (LCM) rare earth metal and alloy production facility at Lacq, and a strategic investment in Carester SAS (alongside InfraVia Capital Partners) to support allied rare earth processing capacity.
USA Rare Earth’s additional investment in France, which aligns with the Company’s planned agreements with the U.S. Department of Commerce, could exceed approximately €175 million through 2030 and could provide over 300 new jobs in the region. This investment would be in conjunction with French government incentives, such as the C3IV program, and with the potential of additional French government support including debt guarantees and possibly a direct equity investment into the USAR European subsidiary.
Speaking at the Choose France summit in Paris, Barbara Humpton, Chief Executive Officer of USA Rare Earth, confirmed that these strategic initiatives were underway, with magnet making in France as a key goal of the company.
“At USA Rare Earth, we are committed to creating resilient, regional operations as we build out the mine-to-magnet value chain. France is an attractive location, with a strong combination of industrial infrastructure, a re-emerging rare earth processing cluster, skilled workforce, and the policy support to rebuild critical minerals capability,” said Humpton. “We look forward to working closely with the French government and the broader European industrial community to make this a reality.”
Additional strategic investment in this vital French ecosystem would further extend USA Rare Earth’s planned operations in the country and reinforce the critical importance of the Lacq industrial cluster.
About USA Rare Earth, Inc.
USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys; its development of magnet manufacturing capacity in Stillwater, Oklahoma; the Pela Ema mine in Brazil (subject to closing the proposed acquisition of Serra Verde Group (“SVG”); and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the Company’s plans, intentions, and expectations with respect to potential magnet manufacturing operations in France, the LCM facility at Lacq, and the planned investment in Carester SAS. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “growth,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: the risk that the Company does not proceed with any such plans or investments in France, that the scope, location, timing, structure, or terms differ materially from those currently contemplated, or that required approvals or closing conditions are not obtained or satisfied; risks that the proposed transactions with SVG, Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; we may not realize the anticipated benefits of our proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of SVG, integration of operations, on the anticipated timeline or at all; the ability of our Stillwater magnet manufacturing facility to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications in operating our business; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; our ability to enter into definitive agreements for the proposed U.S. Government financing, which is subject to conditions precedent and final government approvals, on the anticipated terms or at all and, if executed, to satisfy the milestones and other conditions of such financing, which could impose conditions to access such financing over a period of time; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of our products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company’s competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neodymium magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; and our ability to comply with requirements for federal, state and local government incentives and financing.
Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future developments except as required by law.
Investor Contact:
J.B. Lowe, CFA
Head of Investor Relations, USA Rare Earth [email protected]
Key Takeaways USAR was selected for up to $19.3M in DOE funding to advance U.S. rare earth processing.USAR plans a pilot rare earth separation facility for clean energy, electronics, defense and manufacturing.USA Rare Earth signed a January 2026 LOI tied to proposed CHIPS funding and a secured loan. USA Rare Earth, Inc. (USAR - Free Report) has been selected to secure a maximum of $19.3 million in funding from the U.S. Department of Energy (DOE). The funding will help advance the development of rare earth element (REE) processing capabilities in the United States. The funding is subject to final approval.
The project is estimated to be worth approximately $50.5 million, with as much as $19.3 million anticipated from DOE funding and the balance expected to come from non-government sources.
The project aims to build a pilot-scale facility for separating rare earth elements, an important step in making these materials usable for industries such as clean energy, electronics, defense and advanced manufacturing. Rare earth elements are critical for products like electric vehicles, wind turbines, smartphones and military equipment.
At present, rare earth processing is heavily concentrated in a few regions globally, creating supply-chain risks for countries that rely on these materials. By increasing domestic processing capacity, the project is expected to help improve supply-chain security and reduce dependence on overseas sources. The funding selection reflects growing efforts in the United States to strengthen domestic rare earth production and processing, which are important for energy, technology and national security needs.
Also, in January 2026, USA Rare Earth entered into a non-binding Letter of Intent (LOI) with the U.S. Department of Commerce and announced collaboration with the U.S. Department of Energy (DOE). The Department of Commerce’s CHIPS Program has provided an LOI entailing $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act, a total of $1.6 billion.
Snapshot of USAR's PeersAmong its major peers, MP Materials Corp. (MP - Free Report) has received federal support to strengthen rare earth processing and magnet manufacturing in the United States. MP Materials has been expanding domestic production capabilities to support industries such as electric vehicles, renewable energy, electronics and defense. These efforts by MP Materials are aimed at reducing dependence on overseas rare earth supply chains and improving supply security.
Energy Fuels Inc. (UUUU - Free Report) has been expanding its rare earth processing efforts as part of a strategy focused on critical minerals. Energy Fuels is working to strengthen domestic and North American supply capabilities for materials used in clean energy, technology and defense industries. These initiatives reflect growing efforts to build a more secure and diversified critical minerals supply chain.
USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 105.3% in the past six months compared with the industry’s growth of 36%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 85.96X against the industry’s average of 15.68X. USA Rare Earth has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
As the global race for resource independence accelerates, the domestic rare earth supply chain has become a focal point for long-term investors. Choosing between MP Materials (MP +0.35%) and USA Rare Earth (USAR +0.00%) involves weighing established production against speculative future growth.
MP Materials focuses on scaling its existing mine in California while USA Rare Earth aims to build a new supply chain from scratch in Texas. Both companies seek to reduce global reliance on foreign sources for the essential minerals used in everything from electric vehicle motors to high-tech defense systems.
The case for MP MaterialsMP Materials produces critical minerals at its Mountain Pass facility and serves as a major player in the mining stocks landscape, precisely rare earths. It recently shifted away from selling concentrate to Chinese distributors and now serves clients like Apple (AAPL +0.04%), General Motors (GM 5.21%), and the U.S. Department of Defense (or the Department of War).
In FY 2025, revenue grew 35.1% to nearly $275.5 million. Despite this growth, the company reported a net loss of approximately $85.9 million and, therefore, a negative net margin.
As of its December 2025 balance sheet, the company maintained a current ratio of 7.2x, indicating its ability to cover short-term debt with current assets. Its debt-to-equity ratio of 0.4x compares total debt to shareholders’ equity, indicating a relatively low reliance on borrowed funds. Free cash flow (FCF), calculated as cash from operations minus capital spending, was nearly negative $328.1 million as the firm continues to develop and progress mines and production.
The case for USA Rare EarthUSA Rare Earth is developing a full domestic supply chain from its Round Top project in Texas. The company aims to provide metals and magnets directly to industrial customers.
In FY 2025, revenue reached nearly $1.6 million as the company moved toward its initial operations. However, it recorded a net loss of close to $297.6 million, reflecting the massive costs associated with building out a mine-to-magnet value chain before commercial production begins.
As of its December 2025 balance sheet, the company reported a debt-to-equity ratio of 0.0x, showing it has no total debt relative to its equity. Its current ratio of 10.2x suggests a strong ability to cover immediate liabilities with existing assets. FCF was negative $86.3 million, representing cash from operations minus capital expenditures.
Risk profile comparisonMP Materials faces risks from volatile commodity prices and a heavy dependency on funding from the U.S. Department of War. It also competes with large international producers such as Shenghe Resources, which may have lower operating costs. Any failure to reach production targets at its 10X Facility could also harm its future financial outlook.
USA Rare Earth is an early-stage company with no history of commercial production, making its future profitability highly uncertain. It relies on third-party feedstock until its own mine is operational and faces competition from established players like Lynas Rare Earths (LYSDY 2.70%). Furthermore, the company requires significant additional capital to complete its facilities, which may be difficult to secure on favorable terms.
Valuation comparisonComparing the Forward P/E and P/S ratio shows that both companies trade at significant premiums to the broader market averages.
MetricMP MaterialsUSA Rare EarthSector BenchmarkForward P/E274.8x148.7x25.7xP/S ratio43.9x1661.9xSector benchmark uses the SPDR XLB sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Rare-earths are vital for several industries and applications, including electronics, semiconductors, electric vehicles, renewable energy technology, medical devices, lasers, and defense systems. Under the leadership of President Donald Trump, the U.S. government is making some sweeping moves to boost the domestic supply of rare earths and reduce dependency on China. 67% of the rare earths consumed in the U.S. are currently imported, with 71% coming from China, according to recent research from The Motley Fool.
Both MP Materials and USA Rare Earth are primary beneficiaries of the government’s push, but they sit at different stages of execution. If I were to buy one stock today, I’d go for MP Materials.
The Mountain Pass is the largest rare-earth mine in the U.S. The government knows this, which is why the Department of War acquired a 15% equity stake in MP Materials last year, becoming its largest shareholder. MP Materials will build a rare-earth magnet manufacturing facility, called the 10X facility. It will have an estimated capacity of 10,000 metric tons, and the government has already committed to buying all magnets produced at 10X for 10 years at a floor price of $110 per kilogram for rare-earth compounds.
That’s not all. The Department of War and MP Materials are also establishing a joint venture in Saudi Arabia to develop a rare-earth refinery.
Backed by the government, MP Materials is building a mine-to-magnet business and is already generating revenues. USA Rare Earth also has the government’s backing, but is technically still a pre-revenue company.
In the first quarter, MP Materials produced record rare-earth oxides, scaled heavy rare-earth separation commissioning activities, and broke ground at 10X. Its revenue surged 49% to $90.1 million.
USA Rare Earth has a significant foothold in heavy rare-earth elements used in military and defense systems, but MP Material is already operating at scale and has secured major commercial supply contracts, including with Apple. I’d bet on this rare-earth stock now for the long term.
This morning, analysts at DA Davidson added Nvidia to its best of breed list, noting that the tech giant is firing on all cylinders.
“Nvidia has built a durable competitive advantage anchored in its position as the critical provider of accelerated computing for AI, supported by a full-stack platform that spans GPUs, networking, and software,” said the firm, as quoted by CNBC.
Markets are still hitting higher highs. The S&P 500, for example, is up another 0.16%, or by 12 points. The SPDR S&P 500 ETF (SPY) is up 0.23%, or by $1.77. The Dow is up another 0.28%, or by 135 points. The Nasdaq is up by 0.14%, or by 43 points. Oil is up $2.50 at $89.88, as the war continues. Bitcoin is down by about $1 444.28 at $72,135.
Unfortunately, there’s still a good deal of uncertainty about the Iran war. Most recently, the U.S. said it struck Iranian radar sites as Kuwait reported missile and drone attacks. At the same time, President Trump said he would “make a final determination” shortly, and reiterated that Iran “must agree that they will never have a Nuclear Weapon,” as quoted by CNBC.
In addition, as pointed out by Adam Crisafulli, founder of Vital Knowledge, “Trump clearly doesn’t want to escalate and is looking for an off-ramp. Some type of a pact is very likely, and markets largely assume a sustained cessation of hostilities. An actual announcement will probably trigger a ‘sell the news’ reaction for the overall S&P 500.”
Market Movers: Dell After exploding on Friday, shares of Dell (NYSE: DELL | DELL Price Prediction) are up another $5.45 in premarket.
Once known primarily as a PC manufacturer, Dell has emerged as one of the biggest beneficiaries of the artificial intelligence boom, thanks to surging demand for its AI infrastructure and server business.
The company’s latest earnings report highlights just how strong that momentum has become.
In the first quarter, Dell reported earnings per share of $4.86, crushing Wall Street expectations by $1.96. Revenue surged 87.5% year over year to $43.8 billion, exceeding analyst forecasts by $8.46 billion. Much of that growth came from the company’s booming AI business. Dell booked $24.4 billion in AI orders during the quarter and generated $16.1 billion in AI server revenue.
“Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute, and storage,” said Vice Chairman and Chief Operating Officer Jeff Clarke.
Management’s outlook suggests the growth isn’t slowing anytime soon. Dell raised its fiscal 2027 AI server revenue forecast to $60 billion, underscoring its confidence in continued AI spending across the industry.
Market Movers: Rare Earth Stocks Analysts at Needham just initiated a buy rating on MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR). The firm noted, “We believe we are in the early innings of a multi-year investment cycle across the rare earth magnet value chain as governments around the world push to diversify critical supply chains outside of China. Through 2030, the industry is likely to be characterized by a race by Western suppliers to catch Western demand,” as quoted by CNBC.
Analysts at Citi reiterated a buy rating on Apple (NASDAQ: AAPL), noting that it is incrementally positive on iPhone shipments this year. It also sees Apple building on the strong momentum of the iPhone 17 family.
USA Rare Earth (NASDAQ:USAR) plans to invest more than approximately EUR175 million in France through 2030, expanding its metal, alloy and magnet-making operations in the country.
The planned investment builds on the company's existing French initiatives, which include a Less Common Metals (LCM) rare earth metal and alloy production facility at Lacq and a strategic investment in Carester SAS alongside InfraVia Capital Partners.
The investment would be made in conjunction with French government incentives, including the C3IV program, with potential additional support through debt guarantees and a possible direct equity investment into the company's European subsidiary.
The planned investment aligns with the company's agreements with the US Department of Commerce and could create more than 300 jobs in the region.
Speaking at the Choose France summit in Paris, CEO Barbara Humpton said the company is committed to building resilient, regional operations as it develops the mine-to-magnet value chain, calling France an attractive location for its industrial infrastructure, skilled workforce and policy support for critical minerals.
USA Rare Earth is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil.
June 01, 2026 16:30 ET | Source: USA Rare Earth, Inc.
STILLWATER, Okla., June 01, 2026 (GLOBE NEWSWIRE) -- On June 2, 2026, William Robert Steele Jr., the Chief Financial Officer of USA Rare Earth, Inc. (the “Company”), will be presenting at the William Blair 46th Annual Growth Stock Conference at 11:20 a.m. Central Time. Following the conference, a replay of the presentation will be made available on the investor relations section of the Company’s website at https://investors.usare.com/.
About USA Rare Earth
USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the SVG transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, data center, physical AI, autonomous systems, mobility, healthcare and industrial sectors.
For more information, visit www.usare.com.
USAR Investor Contact:
J.B. Lowe, CFA
VP, Head of Investor Relations [email protected]
USAR Media Relations Contact:
Collected Strategies [email protected]
Blacksburg facility expected to create about 490 high-skill, high-wage manufacturing jobs and significantly expand the Company’s global mine to magnet value chain
By choosing South Carolina, USA Rare Earth is expected to have access to a robust incentives package including grants, tax credits and exemptions, a highly skilled advanced manufacturing workforce, and confirmed energy delivery to the new facility
Facility is expected to contribute to USAR’s planned domestic capacity of 10,000 metric tons per year of both magnets and heavy rare earth strip-cast, metal and alloy production, aligned with the Company’s business plan and expected government financing
BLACKSBURG, S.C., June 02, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USA Rare Earth” or the “Company”), a rare earth, critical minerals and advanced materials company, today announced the selection of Cherokee County, South Carolina, as the site of a new magnet manufacturing and refined metals operation. The project is expected to create about 490 high-skill, high-wage jobs in the Upstate, and will significantly expand domestic production capacity for sintered neodymium-iron-boron (NdFeB) permanent magnets and the refined rare earth metals from which they are made.
To be located in the Bailey Industrial Park in Blacksburg, the state-of-the-art facility will complement the Company’s existing magnet manufacturing facility in Stillwater, Oklahoma, which commissioned its first commercial production line in March 2026. Together, the Stillwater and Blacksburg operations will form the magnet manufacturing centerpiece of USA Rare Earth’s integrated, mine to magnet value chain, which spans the Round Top heavy rare earth mining and processing project in Sierra Blanca, Texas; a separation and processing facility in Wheat Ridge, Colorado; the planned acquisition of the Serra Verde mining and processing operation in Goiás, Brazil; the LCM metal and alloy facility in Cheshire, United Kingdom; and a planned metallization and alloy facility in Lacq, France.
Once online, the Blacksburg facility is targeting production capacity of 6,400 metric tons per annum (tpa) of NdFeB rare earth magnets and 5,000 tpa of strip-cast, metal and alloy. Combined with the planned expansion at the Company’s Stillwater facility, USAR expects total domestic production capacity to reach 10,000 tpa of NdFeB rare earth magnets and 10,000 tpa of heavy rare earth strip-cast, metal and alloy, aligned with the Company’s business plan and expected government financing. Engineering work and equipment procurement for the Blacksburg facility is underway, with site work expected to commence in the coming months and commissioning targeted to begin in 2028.
The Cherokee County selection followed a comprehensive multi-state evaluation in which the Company prioritized access to a robust incentives package across grants, tax credits and exemptions, reliable and affordable power, the availability of a skilled advanced manufacturing workforce, proximity to defense and aerospace customers, and the ability to achieve an accelerated timeline for operational delivery. The site benefits from existing transportation infrastructure along the Interstate 85 corridor, an established advanced manufacturing supply chain across the Upstate, and confirmed energy delivery from Duke Energy.
Magnets and refined metals produced in Blacksburg will support vital needs in the defense, aerospace, semiconductor, medical, AI, energy, and advanced manufacturing industries, which depend on a secure, traceable rare earth value chain across America, its allies and partners.
QUOTES
“Cherokee County is the next critical link in the rare earth and magnet value chain we’re building across the United States, the United Kingdom, Europe and around the globe. South Carolina offered the workforce, the infrastructure and the partners we needed to move quickly. With this investment, we’re bringing home the advanced manufacturing capabilities that America and its allies depend on, from the factory floor to the front lines.”
-USA Rare Earth CEO Barbara Humpton
“South Carolina continues to attract investments that strengthen our economy and create meaningful opportunities for our people. USA Rare Earth’s $1.2 billion investment and the creation of approximately 490 new jobs will have a significant impact on Cherokee County and reinforce our state’s position as a leader in American manufacturing.”
-Gov. Henry McMaster
“USA Rare Earth’s approximately $1.2 billion investment in Cherokee County reflects the state’s strong capabilities in advanced manufacturing and innovation technologies. The Company’s new operation in the Upstate will contribute to South Carolina’s position as a leader in critical sectors.”
-Secretary of Commerce Harry M. Lightsey III
“Two hundred and fifty years ago, Cherokee County helped turn the tide of the Revolutionary War and today we are proud to once again stand on the front lines of American independence by welcoming USA Rare Earth to the Bailey Park. This project strengthens our nation's future by reducing our dependence on China for critical rare earth minerals while bringing jobs, investment and opportunity to Cherokee County.”
-Cherokee County Council Chairman Tim Spencer
“Duke Energy is proud to help bring USA Rare Earth to Cherokee County and strengthen America’s domestic rare earth supply chain. Through our close collaboration with state and local economic development partners, we worked to position this site with the upfront diligence, coordination and energy planning that companies need to move with confidence and speed. As we continue to prioritize reliable power at the lowest possible cost for our customers, we stand ready to welcome more industries like this to call South Carolina home.”
-Duke Energy South Carolina President Tim Pearson
About USA Rare Earth, Inc.
USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the Serra Verde Group transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors. For more information, visit www.usare.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the planned Cherokee County, South Carolina facility, expected capital investment, anticipated job creation, expected production capacity and timelines, expected utility and infrastructure support, anticipated end markets and customers, the expected scope of the Company’s integrated value chain, and the Company’s ability to support U.S. Department of Defense requirements, including the January 2027 restriction on Chinese-origin sintered NdFeB magnets in covered defense applications. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “growth,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from the Company’s expectations, including without limitation: risks associated with permitting, construction, workforce availability, supply chain conditions, customer demand, commodity prices, regulatory and policy developments, financing, and the integration of acquired operations; risks that the proposed transactions with the Serra Verde Group (“SVG”), Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; the Company may not realize the anticipated benefits of its proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of SVG, integration of operations, on the anticipated timeline or at all; the ability of the Company’s Stillwater magnet manufacturing facility to commence commercial operations on the timing and with the production capacity anticipated or at all; the Company’s limited operating history; the Company’s ability to commercially extract minerals from the Round Top deposit on its anticipated timeline or at all; risks that the Company may experience delays, unforeseen expenses, increased capital costs, and other complications in operating its business; the Company’s ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on the Company’s stock price if the Company issues additional common stock or equity-linked securities; the volatility of the Company’s stock price; the Company’s ability to enter into definitive agreements for the proposed U.S. Government financing, which is subject to conditions precedent and final government approvals, on the anticipated terms or at all and, if executed, to satisfy the milestones and other conditions of such financing, which could impose conditions to access such financing over a period of time; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow the Company to develop and commercially operate its Stillwater facility and other facilities; the Company’s ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of the Company’s products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company’s competitors or state actors or the overall competitive environment; the Company’s ability to achieve positive cash flow or profitability or the ability to access cash flow within the Company’s corporate structure due to restrictions contained in the Company’s financing agreements; the Company’s ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of its neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which the Company operates or sell products or otherwise; war, terrorism, natural disasters or public health emergencies; the Company’s ability to retain or recruit key personnel; environmental, health and safety regulations; and the Company’s ability to comply with requirements for federal, state and local government incentives and financing.
Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future developments except as required by law.
USA Rare Earth shares USAR rose more than 4% on Tuesday after the company announced plans to build a $1.2 billion magnet manufacturing and refined metals facility in South Carolina.
The project will expand domestic rare earth production capacity as the United States seeks to reduce reliance on Chinese supply chains.
The company said it has selected Cherokee County, South Carolina, as the location for the new operation, which will be built at Bailey Industrial Park in Blacksburg.
At the time of writing, USA Rare Earth stock was up about 4.79% at $30.84.
USA Rare Earth said the new facility will play a key role in its strategy to build a fully integrated domestic rare earth supply chain.
The Blacksburg operation is expected to produce 6,400 metric tons per year of sintered neodymium-iron-boron (NdFeB) rare earth magnets and 5,000 metric tons per year of strip-cast metals and alloys.
Once combined with the company's existing magnet and refined metals operation in Stillwater, Oklahoma, USA Rare Earth expects total domestic production capacity to reach 10,000 metric tons annually for both magnets and heavy rare earth strip-cast metals and alloys.
Engineering work and equipment procurement for the South Carolina site are already underway.
The company said site work is expected to begin in the coming months, with commissioning targeted to start in 2028.
The project is also expected to create approximately 490 high-skill, high-wage jobs in the region.
“Cherokee County is the next critical link in the rare earth and magnet value chain we’re building across the United States, the United Kingdom, Europe, and around the globe,” said Barbara Humpton, Chief Executive Officer at USA Rare Earth.
South Carolina Governor Henry McMaster also welcomed the investment.
"USA Rare Earth's $1.2 billion investment and the creation of approximately 490 new jobs will have a significant impact on Cherokee County,” McMaster said.
According to the company, magnets and refined metals produced at the facility will support a range of industries that increasingly depend on secure supplies of rare earth materials.
These include aerospace, defense, semiconductors, artificial intelligence, medical technology, energy, and advanced manufacturing.
USA Rare Earth added that it has secured a confirmed energy supply from Duke Energy for the facility.
Rare earth materials are essential components in electric vehicles, wind turbines, oil refining equipment, defense systems, semiconductor manufacturing, and medical imaging technologies.
The company said the new South Carolina operation will complement its broader mine-to-magnet strategy, strengthening domestic manufacturing capabilities across the rare earth value chain.
The investment comes as policymakers push to strengthen domestic rare earth supply chains amid concerns about dependence on China.
The US Department of Defense is set to ban Chinese-origin sintered NdFeB magnets in defense applications beginning in January 2027, increasing demand for domestic production capacity.
China currently controls roughly 90% of global processed rare earth minerals and magnet production, making supply chain diversification a strategic priority for the United States and its allies.
USA Rare Earth is also backed by a $1.6 billion debt-and-equity funding package from the US government to support development of another facility in Texas.
However, the company has faced scrutiny from some lawmakers who have raised concerns about the structure of the funding arrangement and its implications.
With the South Carolina project now moving forward, USA Rare Earth is positioning itself to capitalize on growing demand for domestically produced rare earth magnets and metals as industries and governments seek more secure supply chains.
Definitive Agreements Trigger Access to Up to $277 Million in Federal Funding and Up to $1.3 Billion in CHIPS Senior Secured Loan Capacity to advance the only vertically integrated rare earth company in the U.S. across domestic heavy rare earth mining, processing and separation, metal, and magnet production
Combined with the $1.5 Billion PIPE Closed in January 2026 and Previous Capital Raises, Brings Total Committed Capital Supporting USA Rare Earth’s Growth Plan to Approximately $3.5 Billion
Advances USA Rare Earth as a Global Leader in Rare Earths that is Developing one of the Largest Integrated Mine-to-Magnet Value Chains with Significant Runway for Future Value Creation
STILLWATER, Okla., June 03, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USAR”, “USA Rare Earth”, or the “Company”), today announced the execution of definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in funding under the Department of Commerce’s CHIPS Program.1 The definitive agreements comprise up to $277 million in federal funding and up to $1.3 billion in senior secured loan capacity under the CHIPS Act, with disbursements tied to the achievement of project milestones.
Prior to the definitive documents, USA Rare Earth closed $1.5 billion in private capital raise, signed certain strategic customer agreements, and advanced Round Top.
The definitive agreements establish the framework under which USAR will continue to build out its integrated heavy rare earth mining, metal, and magnet global value chain. Together with the $1.5 billion private capital raise completed in January 2026 and previous capital raises, the agreements bring total committed capital supporting USAR’s growth plan to approximately $3.5 billion.2
“This partnership with the U.S. Government is the largest of its kind in our industry and provides the necessary capital to build the only global platform across light and heavy rare earth mining and processing, metal and alloy making, as well as magnet manufacturing - for the benefit of the United States and its allies,” said Michael Blitzer, Chairman of the Board of USA Rare Earth. “This landmark collaboration reflects the scale and urgency of securing critical supply chains for technologies essential to long-term economic growth. We are grateful for the leadership shown across government in moving with speed and conviction. Our focus now is execution and generating industry-leading returns for both our shareholders and the U.S. Government.”
“Today marks the moment we move from intent to execution alongside the United States Government,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “With the definitive agreements, USAR is positioned to accelerate the building of a global mine-to-magnet value chain that will supply the materials, metals, and magnets that industrial customers depend upon. From defense, aerospace, semiconductors, and data centers to physical AI, energy, mobility, and healthcare, our integrated value chain is designed to power the technology and innovations of the 21st Century. We look forward to our partnership with the United States Government.”
"The CHIPS Program’s $277 million funding and $1.3 billion loan will be instrumental for the construction of a domestic integrated supply chain for critical minerals and NdFeB magnets which are essential for semiconductor chip manufacturing,” said Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation. “Yttrium, gallium, dysprosium and the other 9 critical and strategic minerals that will be mined in Texas, along with the domestic metal and magnet production, provides United States semiconductor companies a reliable domestic source and removes choke points in their manufacturing supply chain that enable chemical vapor deposition, high-k materials, compound semiconductors, dopants and other foundational applications.”
What the Definitive Agreements Enable. The definitive agreements support execution of USAR’s integrated value chain across each layer of the production system, with a targeted 2030 operating profile that, when delivered, is expected to represent the largest domestic heavy rare earth and critical mineral mining, processing and separation, metal making, and magnet production platform in the United States and the establishment of the global leader in rare earths. Specifically, the agreements support:
Development of the Round Top heavy rare earth and critical mineral deposit in Hudspeth County, Texas, targeted to begin commercial production in 2028;Processing and separation of the output from the Round Top Project, including heavy rare earth element and critical mineral oxides and concentrates — including dysprosium, terbium, yttrium, gadolinium, hafnium, erbium, thulium, lutetium, ytterbium, holmium, gallium, and zirconium — securing domestic access to 12 critical minerals and rare earth elements;Reshoring of 10,000 tons per annum (tpa) of heavy rare earth element metal- and alloy-making and strip-casting capacity through USAR’s subsidiary Less Common Metals (LCM), which are capabilities that do not currently exist in the United States; andScaling of neodymium-iron-boron (NdFeB) magnet manufacturing capacity in Stillwater, Oklahoma and Blacksburg, South Carolina to 10,000 tpa. A Partnership at the Scale of the National Challenge. Rare earth elements and permanent magnets are foundational inputs to the technologies that underpin American economic and national security. Today, the United States is structurally dependent on foreign supplies (and in many categories a single-source) for materials that are essential to modern technology and global security.
The definitive agreements between USAR and the Department of Commerce are structured to close that gap. The U.S. Government’s funding is tied to project milestones aligned with USAR’s build schedule and creates a structure that directly aligns with taxpayer returns and the objectives of institutional investors.
Transaction Overview.
The definitive agreements with the Department of Commerce’s CHIPS Program provide access to up to $1.6 billion, comprising up to $277 million in federal funding and up to $1.3 billion in senior secured loan capacity under the CHIPS Act.USAR will issue to the Department of Commerce 16.1 million shares of common stock and approximately 17.6 million warrants.Funding will be disbursed in phases, tied to the Company’s achievement of project milestones, and is structured to reimburse capital expenditures incurred in executing USAR’s business plan.Combined with the $1.5 billion common stock PIPE that closed in January 2026 and previous capital raises, total committed capital to support USAR’s growth plan stands at approximately $3.5 billion.2 1 Funding amounts represent maximum available access under the definitive agreements. Actual disbursements are subject to the Company’s achievement of project milestones and other conditions set forth in the definitive agreements.
2 Approximate total committed capital comprises approximately $1.5 billion in private capital raised through the PIPE transaction that closed on January 28, 2026, previous capital raises, and up to $1.6 billion in U.S. Department of Commerce federal funding and CHIPS Act senior secured loan capacity under the definitive agreements.
Transaction Advisors
Latham & Watkins LLP acted as legal counsel and Moelis & Company LLC acted as exclusive financial advisor to USA Rare Earth in structuring and executing its agreements with the U.S. Government.
About USA Rare Earth
USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the Serra Verde Group transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors. For more information, visit www.usare.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements include those relating to the definitive agreement with the U.S. Department of Commerce and its expected benefits, including the anticipated milestones, conditions precedent, timing of disbursements, and expected funding amounts; the issuance of common stock and warrants to the U.S. Department of Commerce and the potential dilutive impact of such issuances on existing stockholders; the Company’s investment plans, including the development of the Round Top deposit, the development and expansion of processing and separation facilities, the development and expansion of metal-making and strip-casting facilities, and the development and expansion of the magnet manufacturing facility in Stillwater, Oklahoma; the Company’s strategic supply and customer agreements; the Company’s plans for and prospects of its announced acquisitions, investments, and other business development activities, including the announced Serra Verde Group transaction; and projected operating results and performance.
Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “strive,” “target,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from the Company’s expectations, including without limitation: the ability of USA Rare Earth to satisfy the conditions precedent and other milestone-based requirements of the definitive agreement on the anticipated terms or at all; the potential dilution to existing stockholders and adverse effect on the Company’s stock price resulting from the issuance of common stock and warrants to the U.S. Department of Commerce or other issuances of common stock or equity-linked securities; the Company’s ability to commercially extract minerals from the Round Top deposit on the anticipated timeline or at all; the Company’s ability to develop its processing, separation, metal-making, strip-casting, and magnet manufacturing facilities on the anticipated timeline or at all; the Company’s ability to raise additional capital on acceptable terms or at all; the volatility of the Company’s stock price; risks that the proposed transactions with the Serra Verde Group, Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; the Company may not realize the anticipated benefits of its proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of the Serra Verde Group, integration of operations, on the anticipated timeline or at all; the ability of the Company’s Stillwater magnet manufacturing facility to commence commercial operations on the timing and with the production capacity anticipated or at all; the Company’s limited operating history; risks that the Company may experience delays, unforeseen expenses, increased capital costs, and other complications in operating its business; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow the Company to develop and commercially operate its Stillwater facility and other facilities; the Company’s ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of the Company’s products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company’s competitors or state actors or the overall competitive environment; the Company’s ability to achieve positive cash flow or profitability or the ability to access cash flow within the Company’s corporate structure due to restrictions contained in the Company’s financing agreements; the Company’s ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of its neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which the Company operates or sells products or otherwise; war, terrorism, natural disasters or public health emergencies; the Company’s ability to retain or recruit key personnel; environmental, health and safety regulations; and the Company’s ability to comply with requirements for federal, state and local government incentives and financing.
Additional risks and detailed information regarding the factors that may cause actual results to differ materially has been and will be included in the Company’s filings with the SEC, including the Company’s most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statement), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future developments except as required by law.
USA Rare Earth announced definitive agreements with the US Department of Commerce that provide access to up to $1.6 billion in funding under the CHIPS Act to support the development of a domestic rare earth supply chain.
The agreements formalize an earlier announcement that the Trump administration would support a $1.6 billion debt-and-equity funding package for the company.
Despite the funding milestone, shares of USAR declined nearly 5.3% in morning trading.
The company said the funding framework will help accelerate development of its rare earth mining, processing, metal-making, and magnet manufacturing operations across the United States as Washington seeks to reduce dependence on China for critical minerals and rare earth materials.
Under the agreements, USA Rare Earth will gain access to up to $277 million in federal funding and as much as $1.3 billion in senior secured loan capacity through the Commerce Department's CHIPS program.
Disbursements will be tied to the achievement of project milestones, according to the company.
The funding adds to a $1.5 billion private capital raise completed in January.
Combined with previous fundraising efforts, USA Rare Earth said it now has approximately $3.5 billion in committed capital to support its expansion plans.
As part of the agreement with the Commerce Department, the company will issue 16.1 million common shares and 17.6 million warrants to the department.
The agreements come months after Chief Executive Officer Barbara Humpton told Reuters that the transaction was expected to close in April.
A significant portion of the funding will support the development of the company's Round Top heavy rare earth and critical minerals project in Texas.
USA Rare Earth is targeting initial production from the project in 2028 as part of its broader effort to establish a fully integrated domestic supply chain.
The company said the agreements will also support processing and separation operations for materials produced at Round Top, including heavy rare earth element oxides, concentrates, and other critical minerals.
In addition, funding will be used to expand domestic metal-making, alloy production, and strip-casting capabilities.
The company plans to reshore 10,000 tons per year of heavy rare earth metal-making and alloy capacity as it builds out its mine-to-magnet strategy.
The announcement comes as the United States continues efforts to strengthen domestic production of critical minerals and reduce reliance on China, which currently dominates global rare earth processing and magnet manufacturing.
USA Rare Earth earlier announced plans to invest $1.2 billion in a new magnet manufacturing and refined metals facility in South Carolina.
The project is expected to expand domestic production capacity and create hundreds of jobs.
The Commerce Department funding will also support the scaling of neodymium-iron-boron (NdFeB) magnet manufacturing operations in Oklahoma and South Carolina to a combined capacity of 10,000 tons per year.
USA Rare Earth said its objective remains the creation of an integrated US rare earth supply chain spanning mining, processing, metal production, and magnet manufacturing.
Key Takeaways USA Rare Earth gained access to up to $1.6 billion in CHIPS Program funding and loan support.USAR now has about $3.5 billion in committed capital after a January 2026 private raise.USAR plans to advance the Round Top project and expand U.S. processing and magnet facilities. USA Rare Earth, Inc. (USAR - Free Report) has strengthened its financial position after securing access to up to $1.6 billion in government-backed funding under the CHIPS Program from the U.S. Department of Commerce. The package includes up to $277 million in federal funding and up to $1.3 billion in loan support as the company advances key development milestones.
The funding is expected to support USA Rare Earth expand its operations across the rare earth supply chain, including mining, processing, metal production and magnet manufacturing. Together with the $1.5 billion private capital raise completed in January 2026 and earlier fundraising efforts, the company now has about $3.5 billion in committed capital. USAR plans to use the capital to advance mining activities, expand processing capabilities and increase production of rare earth magnets in the United States.
A major focus of the investment is the development of the Round Top project in Texas, which is expected to begin commercial production in 2028. The funding will also support facilities for processing rare earth materials, producing metals and alloys, and increasing magnet manufacturing capacity in Oklahoma and South Carolina.
Also in May 2026, USAR was selected to secure a maximum of $19.3 million in funding from the U.S. Department of Energy (DOE). The funding will help advance the development of rare earth element (REE) processing capabilities in the United States. The funding is subject to final approval.
Snapshot of USAR's PeersAmong its major peers, MP Materials Corp. (MP - Free Report) has received federal support to strengthen rare earth processing and magnet manufacturing in the United States. MP Materials has been expanding domestic production capabilities to support industries such as electric vehicles, renewable energy, electronics and defense. These efforts by MP Materials are aimed at reducing dependence on overseas rare earth supply chains and improving supply security.
Energy Fuels Inc. (UUUU - Free Report) has been expanding its rare earth processing efforts as part of a strategy focused on critical minerals. Energy Fuels is working to strengthen domestic and North American supply capabilities for materials used in clean energy, technology and defense industries. These initiatives reflect growing efforts to build a more secure and diversified critical minerals supply chain.
USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 58.3% in the past six months compared with the industry’s growth of 32.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 83.20X against the industry’s average of 15.69X. USA Rare Earth has a Value Score of F.
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The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
The United States faces a huge supply chain vulnerability regarding rare-earth elements. That's because China controls up to 90% of the processing of these rare-earth elements, according to research by The Motley Fool. The federal government has taken an active role in bolstering rare-earth mining and processing and has invested in two companies, MP Materials (MP +0.35%) and USA Rare Earth (USAR +0.00%), to bolster its capabilities.
The two companies are expanding their capabilities for mining and processing rare-earth elements and manufacturing refined magnets, which are critical for defense, aerospace, and technological applications. If you're considering investing in the budding U.S. rare-earth industry, one of these companies stands out as a better investment right now.
Image source: Getty Images.
The U.S. government has a vested interest in MP Materials and USA Rare Earth MP Materials and USA Rare Earth are two companies that have come onto investors' radar after the U.S. government provided massive financial backing and support. Last year, MP Materials entered into a historic agreement with the U.S. Department of Defense (DoD) to help accelerate the build-out of its second domestic magnet facility (the 10X facility) and its mining capabilities.
As part of the agreement, the DoD has agreed to a 10-year purchase agreement for MP Materials' neodymium-praseodymium (NdPr) products at $110 per kilogram, providing the company with a price floor that insulates it from foreign entities that may try to undercut its prices. NdPr is a rare-earth alloy used to manufacture powerful permanent magnets crucial to defense and technology systems.
The U.S. government has also agreed to purchase 100% of the magnets produced at MP's 10X facility for 10 years following the facility's construction. In return, the DoD agreed to purchase $400 million in shares of the rare-earth company and is now its largest shareholder, holding 15% of the shares outstanding.
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In January, USA Rare Earth also reached a $1.6 billion deal with the U.S. Department of Commerce through the CHIPS Act, which will enable the company to build out its own "mine-to-magnet" supply chain. As part of the agreement, USA Rare Earth will issue 16.1 million common shares to the U.S. Department of Commerce and roughly 17.6 million warrants.
MP Materials has this major strategic advantage MP Materials has a huge first-mover advantage over USA Rare Earth. That's because MP owns and operates the Mountain Pass mine in California, the only active, large-scale, rare-earth mining and processing site in North America. This established infrastructure allows the company to hit the ground running and generate revenue quickly as it ramps up its operations.
In the first quarter, MP Materials produced a record 917 metric tons of NdPr and sold 1,006 metric tons, representing year-over-year increases of 63% and 117%, respectively. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved from negative $2.7 million last year to positive $36.6 million. Meanwhile, its generally accepted accounting principles (GAAP) net loss shrank from $22.7 million to $8 million year over year.
USA Rare Earth is still in its early stages and is spending big on acquisitions to get its mining and processing business up and running. Over the past several months, it has acquired Serra Verde Group for $2.8 billion and Less Common Metals for about $220 million. In addition, the company aims to develop the Round Top deposit in Texas and expand its processing capabilities with its facility in Stillwater, Oklahoma and a newly announced facility in Blacksburg, South Carolina.
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While MP Materials is further ahead, growth-oriented investors may gravitate toward USA Rare Earth for one reason: its Round Top deposit. This deposit is rich in scarce, heavy, rare-earth elements, such as dysprosium and terbium, which are needed to make heat-resistant permanent magnets for electric vehicles, wind turbines, and military defense systems.
Both stocks come with risk, but one stands out as a better buy Investing in MP Materials or USA Rare Earth isn't for the faint of heart. That's because both companies are still early-stage, pre-profit businesses investing heavily in building out mining and processing capabilities. For that reason, conservative investors would likely want to avoid both stocks right now.
That said, if you are intrigued by the rare-earth supply chain build-out in the U.S., MP Materials stands out as the better buy to me right now. The company already has the Mountain Pass mine and processing capabilities, has secured major supply contracts with Apple and General Motors, has a better deal with the government with established price floors, and is already benefiting from ramped-up production.
Key Takeaways USA Rare Earth completed Phase 1a commissioning of its commercial magnet production line in Oklahoma.USAR expects Phase 1a to reach a 600-metric-ton annual production run rate by the end of 2026.USAR plans Phase 1b expansion to lift total annual magnet production capacity to 1,200 metric tons. USA Rare Earth, Inc. (USAR - Free Report) is advancing its growth strategy with the successful commissioning of Phase 1a of its commercial magnet production line at its Stillwater, OK, facility. The milestone marks the company’s entry into commercial-scale magnet manufacturing and positions it to begin supplying sintered neodymium-iron-boron (NdFeB) permanent magnets to customers in the second quarter of 2026.
Over the past year, USAR completed the installation and assembly of key production equipment and prepared the Stillwater site for commercial operations. The company also expanded its workforce, adding skilled engineers and technicians to support production ramp-up and future customer commitments.
The successful commissioning demonstrates the facility’s ability to manage a complex, multi-step manufacturing process at commercial scale. The process converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets. NdFeB magnets are critical components in industries such as defense, aerospace, automotive and advanced technologies. Demand for these high-performance magnets continues to increase as manufacturers seek reliable domestic sources of supply.
Phase 1a is expected to reach an annual run-rate production capacity of 600 metric tons by the end of 2026. The planned addition of Phase 1b is projected to double the Stillwater facility’s total capacity to 1,200 metric tons annually by the first quarter of 2027.
As production scales up, the Stillwater facility is set to play an important role in strengthening the U.S. rare earth magnet supply chain. The increased manufacturing capacity and growing demand for domestically produced magnets could provide USAR with additional revenue opportunities and support its long-term growth prospects.
Snapshot of USA Rare Earth’s PeersAmong its major peers, NioCorp Developments Ltd. (NB - Free Report) is working to move its Elk Creek Project in Nebraska closer to production. In August 2025, NioCorp completed its first drilling program at the Elk Creek Project on schedule and within budget. In February 2026, NioCorp started construction of the main underground access for its Elk Creek Critical Minerals Project in southeast Nebraska.
USAR’s other peer, Trilogy Metals Inc. (TMQ - Free Report) , continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited. In July 2025, Trilogy began a multi-year core re-boxing program to protect drill core for long-term future use.
USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 71.8% in the past year compared with the industry’s growth of 41.8%.
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From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 66.69X against the industry’s average of 14.69X. USA Rare Earth carries a Value Score of F.
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The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Key Takeaways USAR commissioned Phase 1a magnet production in Oklahoma, targeting customer shipments in Q2 2026.USAR secured access to up to $1.6B in CHIPS-backed funding and a $14.2M Texas grant.USAR's Round Top acquisition adds full project ownership; Stillwater aims for 1,200 tons by 2027. USA Rare Earth, Inc. (USAR - Free Report) shares have surged 73.5% over the past year, outperforming the industry and the S&P 500, which have returned 41.8% and 26%, respectively. The company is gaining from the launch of its commercial magnet production line and strategic acquisitions aimed at strengthening its rare earth operations. It is also benefiting from government-backed funding and expansion initiatives that support the development of a domestic rare earth supply chain.
In contrast, the company’s peers like BHP Group Limited (BHP - Free Report) and MP Materials (MP - Free Report) have gained 64.5% and 111.5%, respectively, over the same time frame.
USAR Outperforms Industry & S&P 500
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Closing at $22.21 in the last trading session, the stock is trading below its 52-week high of $43.98 but higher than its 52-week low of $9.32. The stock is trading above its 200-day moving average but slightly below its 50-day moving average, indicating that the long-term trend remains positive despite some near-term weakness.
Let’s take a look at USAR’s fundamentals to better analyze how to play the stock.
Growth Drivers for USAR StockThe successful commissioning of Phase 1a of USAR’s commercial magnet production line at its Stillwater, OK, facility marks an important step in its growth strategy and allows it to begin supplying sintered NdFeB permanent magnets to customers in the second quarter of 2026.
The commissioning highlights the company’s capability to operate a complex rare earth magnet manufacturing process at a commercial scale. At its Stillwater facility, USAR transforms rare earth materials into high-performance NdFeB permanent magnets through a series of production steps, serving end markets such as defense, aerospace and automotive.
Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, Stillwater is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.
USAR has strengthened its growth strategy through a combination of financing and acquisitions. In June 2026, the company secured access to up to $1.6 billion in government-backed funding under the CHIPS Program from the U.S. Department of Commerce. The package includes up to $277 million in federal funding and up to $1.3 billion in loan support as the company advances key development milestones.
In May 2026, USA Rare Earth secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.
In January 2026, the company completed a $1.5 billion PIPE financing to fund upgrades at the Stillwater facility, expand magnet finishing operations and complete Line 1b, increasing planned NdFeB magnet production capacity to roughly 1,200 metric tons.
Also, in March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. The November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.
Despite these growth initiatives, USAR remains in the early stages of commercialization and is continuing to incur losses as it scales its business. While the acquisition of Less Common Metals has started contributing to revenues, profitability remains under pressure from higher operating expenses associated with expansion efforts, acquisitions and workforce additions.
In the first quarter of 2026, selling, general and administrative expenses increased significantly to $21.2 million from $7 million in the prior-year period, driven by higher legal, consulting and personnel-related costs. Research and development expenses also rose to $14.2 million from $1.7 million a year ago, reflecting increased investment in product development and growth initiatives.
USAR operates in the mineral exploration and mining markets, which include major industry players like BHP Group and MP Materials.
USAR’s Estimate RevisionsThe Zacks Consensus Estimate for USAR’s bottom line for 2026 has decreased in the past 60 days.
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ValuationFrom a valuation standpoint, USA Rare Earth is trading at a forward price-to-earnings ratio of a negative 65.94X against the industry average of 14.73X. In comparison, BHP Group and MP Materials are trading at 15.46X and 156.66X, respectively.
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Final TakeUSAR is benefiting from the commissioning of its commercial magnet production line, strategic acquisitions and investments aimed at establishing a fully integrated domestic rare earth supply chain. The acquisitions of Less Common Metals and Texas Mineral Resources are expected to strengthen its long-term growth prospects.
However, the company remains in the early stages of commercialization and continues to report losses as it invests heavily in expansion and growth initiatives. Rising operating and research and development expenses are likely to weigh on near-term profitability, making the stock less attractive at present. Holding on to this Zacks Rank #4 (Sell) company at present does not seem prudent.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popular tool for gauging value, it has its limitations, especially when evaluating companies that are unprofitable or still in their early growth phases.
In such cases, the price-to-sales (P/S) ratio becomes particularly valuable. By comparing a company’s market capitalization to its revenues, the P/S ratio offers a clearer picture of value when earnings are minimal or volatile.
If you are looking for growth at a discount, low P/S stocks can offer compelling opportunities. These stocks often trade below their intrinsic value, making them attractive to investors seeking upside potential without paying a premium. While the P/S ratio alone does not guarantee success, when combined with strong fundamentals and positive business momentum, it can signal a stock poised for a breakout.
KT Corporation (KT - Free Report) , Asahi Kasei Corporation (AHKSY - Free Report) , Apple Hospitality REIT, Inc. (APLE - Free Report) , PagSeguro Digital (PAGS - Free Report) and First American Financial Corporation (FAF - Free Report) are some companies with low price-to-sales ratios and the potential to offer higher returns.
While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure a company's growth is not overvalued.
A stock’s price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. A stock with a price-to-sales ratio below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap and a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.
Price-to-Sales less than the Median Price-to-Sales for its Industry: The lower the price-to-sales ratio, the better.
Price-to-Earnings using F(1) estimate less than the Median Price-to-Earnings for its Industry: The lower, the better.
Price-to-Book (Common Equity) less than the Median Price-to-Book for its Industry: This is another parameter to ensure the value feature of a stock.
Debt-to-Equity (Most Recent) less than the Median Debt-to-Equity for its Industry: A company with less debt should have a stable price-to-sales ratio.
Current Price greater than or equal to $5: The stocks must be trading at a minimum of $5 or higher.
Zacks Rank less than or equal to #2 (Buy): Zacks Rank #1 (Strong Buy) or #2 stocks are known to outperform, irrespective of the market environment.
Value Score less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank 1 or 2, offer the best opportunities in the value investing space.
Here are five of the 18 stocks that qualified the screening:
KT Corp is a leading integrated telecom and digital platform provider in South Korea, offering wireless, broadband and IPTV services. The company is expanding beyond connectivity into AI, cloud, data centers and enterprise digital transformation, aiming to diversify revenue streams. KT is also strengthening its media, fintech and content ecosystem to enhance customer engagement. Stable subscriber growth and bundled offerings support recurring cash flows, while B2B digital services provide long-term upside.
However, competition, regulatory pressures and heavy network investment requirements remain risks. Overall, KT combines defensive telecom earnings with emerging growth opportunities in AI-driven and platform-based services. KT currently has a Zacks Rank of 2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tokyo, Japan-based Asahi Kasei is a diversified industrial group operating across materials, homes and healthcare. The company produces petrochemicals, battery separators, electronics materials and fibers, while also building residential homes and providing construction solutions. Its healthcare segment includes pharmaceuticals, medical devices and critical care products, supporting stable long-term growth.
Asahi Kasei benefits from exposure to electric vehicle batteries, semiconductor demand and aging demographics in healthcare. However, earnings can be sensitive to cyclical chemicals demand and raw material costs. Overall, the company combines defensive healthcare revenues with growth opportunities in advanced materials and sustainability-focused innovations. AHKSY has a Value Score of A and a Zacks Rank of 2 at present.
Apple Hospitality is a publicly traded real estate investment trust that owns the largest and most diverse portfolio of upscale, rooms-focused hotels in the United States. The company offers a fundamentally sound lodging REIT story built on portfolio quality, brand alignment and disciplined execution. It owns a geographically diversified collection of room-focused hotels affiliated with leading brands, giving it broad exposure to leisure, corporate and group demand.
Management has demonstrated prudent capital allocation through selective acquisitions, timely dispositions and consistent reinvestment to keep properties competitive. A flexible balance sheet and ample liquidity provide resilience across cycles. While recent demand softness weighed on performance, leisure trends remain supportive and operational agility positions the portfolio to benefit as business travel normalizes, supporting long-term cash flow stability and shareholder returns. APLE has a Value Score of B and a Zacks Rank of 2 at present.
São Paulo, Brazil-based PagSeguro Digital offers a broad suite of financial and payment solutions tailored for consumers, individual entrepreneurs, micro-merchants, and small to mid-sized businesses across Brazil and select international markets. Its offerings include digital banking, wire transfers, tax payments, ATM access, and POS and online payment tools. With a tech-driven, integrated ecosystem, PagSeguro delivers accessible services that support daily operations and drive business growth.
PAGS is strengthening its digital banking platform, expanding services for consumers and merchants, while adjusting credit offerings to manage funding cost pressures. Its shift toward secured lending reflects a disciplined, risk-aware strategy. With a focus on innovation, sustainable growth and prudent financial management, PagSeguro is well-positioned to seize long-term opportunities in Brazil’s dynamic digital finance space. PAGS currently has a Value Score of A and a Zacks Rank #2.
First American Financial presents a solid investment case, supported by its leadership in the U.S. title insurance market and strong pricing power in a concentrated industry. The company is focused on expanding its core title insurance and settlement services business while strengthening distribution relationships and broadening its international footprint. Strategic acquisitions and investments in technology, data and AI are enhancing efficiency and expanding its title plant coverage, positioning the company well for the next real estate cycle.
Additionally, consistent shareholder returns through dividends and share repurchases, supported by a high-quality investment portfolio and improving profitability, make the stock attractive for long-term investors seeking stability and income. FAF currently has a Value Score of A and a Zacks Rank #2.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is PagSeguro Digital (PAGS - Free Report) . PAGS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.24, while its industry has an average P/E of 17.17. Over the past 52 weeks, PAGS's Forward P/E has been as high as 7.81 and as low as 4.84, with a median of 6.45.
Investors should also note that PAGS holds a PEG ratio of 0.64. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAGS's industry currently sports an average PEG of 1.05. Over the past 52 weeks, PAGS's PEG has been as high as 0.69 and as low as 0.33, with a median of 0.49.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PAGS has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.88.
Finally, we should also recognize that PAGS has a P/CF ratio of 4.59. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PAGS's P/CF compares to its industry's average P/CF of 13.15. Within the past 12 months, PAGS's P/CF has been as high as 4.68 and as low as 2.85, with a median of 3.80.
These are only a few of the key metrics included in PagSeguro Digital's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PAGS looks like an impressive value stock at the moment.
In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $10.34, marking a -1.8% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
Coming into today, shares of the company had lost 0.38% in the past month. In that same time, the Business Services sector lost 6.27%, while the S&P 500 lost 4.28%.
The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.39 per share. This would mark year-over-year growth of 25.81%. Simultaneously, our latest consensus estimate expects the revenue to be $984.75 million, showing a 19.06% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.67 per share and a revenue of $4.04 billion, representing changes of +17.61% and +10.36%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.91% higher. At present, PagSeguro Digital Ltd. boasts a Zacks Rank of #2 (Buy).
Looking at valuation, PagSeguro Digital Ltd. is presently trading at a Forward P/E ratio of 6.31. Its industry sports an average Forward P/E of 9.84, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.
Investors should also note that PAGS has a PEG ratio of 0.42 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.79.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Exchange Traded Concepts LLC lessened its stake in PagSeguro Digital Ltd. (NYSE:PAGS – Free Report) by 43.9% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 94,964 shares of the company’s stock after selling 74,432 shares during the quarter. Exchange Traded Concepts LLC’s holdings in PagSeguro Digital were worth $915,000 as of its most recent SEC filing.
A number of other hedge funds have also recently modified their holdings of the stock. Causeway Capital Management LLC raised its position in PagSeguro Digital by 44.6% during the third quarter. Causeway Capital Management LLC now owns 3,892,125 shares of the company’s stock valued at $38,921,000 after acquiring an additional 1,200,587 shares in the last quarter. Baupost Group LLC MA purchased a new stake in PagSeguro Digital in the 2nd quarter worth approximately $24,100,000. Grantham Mayo Van Otterloo & Co. LLC acquired a new stake in shares of PagSeguro Digital during the 3rd quarter worth approximately $3,864,000. Principal Financial Group Inc. grew its stake in shares of PagSeguro Digital by 43.9% during the 3rd quarter. Principal Financial Group Inc. now owns 788,922 shares of the company’s stock worth $7,889,000 after purchasing an additional 240,846 shares during the period. Finally, SG Americas Securities LLC increased its holdings in shares of PagSeguro Digital by 508.4% during the 3rd quarter. SG Americas Securities LLC now owns 194,856 shares of the company’s stock valued at $1,949,000 after purchasing an additional 162,828 shares in the last quarter. Hedge funds and other institutional investors own 45.88% of the company’s stock.
Insiders Place Their Bets In related news, Director Luis Frias acquired 498,500 shares of the firm’s stock in a transaction on Friday, March 27th. The shares were acquired at an average cost of $9.96 per share, with a total value of $4,965,060.00. Following the completion of the acquisition, the director directly owned 2,673,605 shares in the company, valued at approximately $26,629,105.80. This trade represents a 22.92% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.
PagSeguro Digital Trading Up 0.0% Shares of PAGS opened at $10.35 on Friday. The firm has a market cap of $3.41 billion, a P/E ratio of 8.08, a PEG ratio of 0.42 and a beta of 1.42. PagSeguro Digital Ltd. has a 12 month low of $7.36 and a 12 month high of $12.32. The stock’s 50 day moving average is $10.50 and its two-hundred day moving average is $10.03.
PagSeguro Digital (NYSE:PAGS – Get Free Report) last announced its earnings results on Wednesday, March 4th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.01. PagSeguro Digital had a return on equity of 16.20% and a net margin of 10.37%.The business had revenue of $991.79 million during the quarter, compared to the consensus estimate of $1.03 billion. Equities research analysts forecast that PagSeguro Digital Ltd. will post 1.17 EPS for the current year.
PagSeguro Digital Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, April 22nd will be given a dividend of $0.26 per share. The ex-dividend date is Wednesday, April 22nd. This represents a $1.04 dividend on an annualized basis and a yield of 10.1%. PagSeguro Digital’s dividend payout ratio is currently 10.94%.
Analyst Ratings Changes Several equities analysts recently issued reports on PAGS shares. Wall Street Zen cut shares of PagSeguro Digital from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Weiss Ratings restated a “hold (c)” rating on shares of PagSeguro Digital in a research report on Thursday, January 22nd. Finally, UBS Group upped their price objective on shares of PagSeguro Digital from $13.00 to $14.00 and gave the stock a “buy” rating in a research report on Wednesday, January 28th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $11.86.
Read Our Latest Stock Report on PagSeguro Digital
PagSeguro Digital Company Profile (Free Report)
PagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.
The company’s product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.
Featured Articles Five stocks we like better than PagSeguro Digital Want to see what other hedge funds are holding PAGS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PagSeguro Digital Ltd. (NYSE:PAGS – Free Report).
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Mastercard (NYSE:MA – Get Free Report) and PagSeguro Digital (NYSE:PAGS – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Analyst Ratings This is a breakdown of current ratings for Mastercard and PagSeguro Digital, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Mastercard 1 1 20 6 3.11 PagSeguro Digital 0 4 5 0 2.56 Mastercard currently has a consensus price target of $664.40, suggesting a potential upside of 32.60%. PagSeguro Digital has a consensus price target of $11.86, suggesting a potential upside of 11.49%. Given Mastercard’s stronger consensus rating and higher probable upside, analysts plainly believe Mastercard is more favorable than PagSeguro Digital.
Profitability This table compares Mastercard and PagSeguro Digital’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Mastercard 45.65% 203.92% 29.74% PagSeguro Digital 10.37% 16.20% 3.33% Insider and Institutional Ownership 97.3% of Mastercard shares are owned by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are owned by institutional investors. 0.1% of Mastercard shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends Mastercard pays an annual dividend of $3.48 per share and has a dividend yield of 0.7%. PagSeguro Digital pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Mastercard pays out 21.1% of its earnings in the form of a dividend. PagSeguro Digital pays out 10.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mastercard has increased its dividend for 13 consecutive years. PagSeguro Digital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk Mastercard has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Valuation & Earnings This table compares Mastercard and PagSeguro Digital”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Mastercard $32.79 billion 13.63 $14.97 billion $16.52 30.33 PagSeguro Digital $3.65 billion 0.96 $379.40 million $1.28 8.31 Mastercard has higher revenue and earnings than PagSeguro Digital. PagSeguro Digital is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.
Summary Mastercard beats PagSeguro Digital on 15 of the 18 factors compared between the two stocks.
About Mastercard (Get Free Report)
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.
About PagSeguro Digital (Get Free Report)
PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.
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Key Takeaways Five low P/B stocks-PAGS, MG, STRA, NWG and PCG-pass key value screens for AprilScreening uses low P/B, P/S, P/E, PEG1, price greater than or equal to $5 and solid trading volume thresholdsPagSeguro Digital, Mistras Group and peers show ~15% long-term EPS growth projections Value investors typically rely on price-to-earnings (P/E) and price-to-sales (P/S) ratios to spot undervalued stocks with strong return potential. However, the often-overlooked price-to-book (P/B) ratio is also a simple and effective valuation metric. It compares a company’s market price with its book value.
The P/B ratio is calculated as:
P/B ratio = market price per share ÷ book value of equity per share
This ratio indicates how much investors are willing to pay relative to a company’s book value. For instance, if a stock trades at $10 and its book value per share is $5, investors are paying twice its book value. Generally, a P/B ratio below 1.0 suggests potential undervaluation, though many value investors consider stocks with a P/B below 3.0 as attractive.
This metric can help identify attractively priced stocks with upside potential like PagSeguro Digital (PAGS - Free Report) , Mistras Group (MG - Free Report) , Strategic Education (STRA - Free Report) , NatWest Group plc (NWG - Free Report) and PG&E Corporation (PCG - Free Report) .
What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
5 Low Price-to-Book StocksHere are five of the 15 stocks that qualified for the screening:
São Paulo, Brazil-based PagSeguro Digital is one of the largest digital banks in Brazil, promoting innovative solutions in financial services and payment methods.
PAGS currently has a Value Score of A and a Zacks Rank #2. PAGS has a projected 3-5-year EPS growth rate of 14.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NJ-based Mistras Group is a global provider of technology-enabled, non-destructive testing solutions used to evaluate the structural integrity of critical energy, industrial and public infrastructure. Mistras Group currently has a Zacks Rank #1 and a Value Score of B. MG has a projected 3-5-year EPS growth rate of 16.0%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #1 and a Value Score of B.
NatWest Group provides personal and commercial banking and other financial solutions. NatWest Group, formerly known as The Royal Bank of Scotland Group plc, is based in Edinburgh, the United Kingdom. NatWest Group has a Zacks Rank #2 and a Value Score of B. PAX has a projected 3-5-year EPS growth rate of 15.3%.
San Francisco, CA-based PG&E Corporation is the parent holding company of California’s largest regulated electric and gas utility, Pacific Gas and Electric Company. The utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. It engages in the business of electricity and natural gas distribution; electricity generation, procurement, and transmission; and natural gas procurement, transportation and storage. The utility also operates hydro-electric, nuclear and fossil fuel power plants. This Zacks Rank #2 company has a Value Score of A. PCG has a projected 3-5-year EPS growth rate of 15.9%.
From a technical perspective, PagSeguro Digital Ltd. (PAGS - Free Report) is looking like an interesting pick, as it just reached a key level of support. PAGS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
PAGS has rallied 6.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PAGS could be on the verge of another move higher.
Looking at PAGS's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting PAGS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
PagSeguro Digital Ltd. (PAGS - Free Report) closed the most recent trading day at $10.65, moving -1.02% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 0.83%.
Shares of the company have appreciated by 6.11% over the course of the past month, outperforming the Business Services sector's loss of 4.48%, and the S&P 500's gain of 0.8%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is expected to report EPS of $0.39, up 25.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $984.75 million, up 19.06% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.67 per share and revenue of $4.04 billion. These totals would mark changes of +17.61% and +10.36%, respectively, from last year.
Any recent changes to analyst estimates for PagSeguro Digital Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.91% higher. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, PagSeguro Digital Ltd. is presently being traded at a Forward P/E ratio of 6.45. For comparison, its industry has an average Forward P/E of 11.58, which means PagSeguro Digital Ltd. is trading at a discount to the group.
We can also see that PAGS currently has a PEG ratio of 0.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.89.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has PagSeguro Digital Ltd. (PAGS - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
PagSeguro Digital Ltd. is a member of our Business Services group, which includes 234 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. PagSeguro Digital Ltd. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PAGS' full-year earnings has moved 2.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, PAGS has gained about 10.5% so far this year. Meanwhile, stocks in the Business Services group have lost about 11.4% on average. This means that PagSeguro Digital Ltd. is performing better than its sector in terms of year-to-date returns.
UL Solutions Inc. (ULS - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 7.1%.
The consensus estimate for UL Solutions Inc.'s current year EPS has increased 6.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, PagSeguro Digital Ltd. is a member of the Financial Transaction Services industry, which includes 36 individual companies and currently sits at #159 in the Zacks Industry Rank. On average, stocks in this group have lost 17.9% this year, meaning that PAGS is performing better in terms of year-to-date returns.
UL Solutions Inc., however, belongs to the Business - Services industry. Currently, this 20-stock industry is ranked #149. The industry has moved -12.4% so far this year.
Going forward, investors interested in Business Services stocks should continue to pay close attention to PagSeguro Digital Ltd. and UL Solutions Inc. as they could maintain their solid performance.
On April 15, 2026, PagSeguro Digital Ltd PAGS shares rose 4.0% to a current price of $11.34. The stock has shown remarkable performance, trading within a 52-week range of $7.74 to $12.32, which highlights its volatility and potential for growth over the past year.
GF Value™ verdict: Current price of $11.34 is 23.4% below the estimated fair value of $14.80.GF Score™: 76/100, indicating an above-average potential for long-term returns.Most notable signal: Insider activity shows that insiders bought $5.0M worth of shares in the last 3 months, with no selling activity reported. Is PAGS Overvalued or Undervalued? The current price of PagSeguro Digital Ltd PAGS at $11.34 is significantly below the GF Value™ estimate of $14.80, suggesting that the stock is undervalued by approximately 23.4%. This presents an opportunity for investors who recognize the potential upside. The GF Valuation label categorizes PAGS as 'Modestly Undervalued,' indicating that while there are positive signals, caution is still advised as market conditions can change rapidly.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The margin of safety provided by the undervaluation could offer a cushion against market volatility, but investors should consider the broader economic factors that could impact future performance.
How Does PAGS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.8x 10.8x (5-Year Median) Forward P/E 6.6x N/A The current P/E ratio of 8.8x is below the historical 5-year median P/E of 10.8x, indicating that the stock is trading at a lower valuation compared to its historical performance. This P/E analysis supports the GF Value™ verdict of undervaluation, suggesting that PAGS may present an attractive entry point for value-focused investors.
What Does PAGS's GF Score™ Tell Us? Metric Rating GF Score™ 76 Financial Strength 2/10 Profitability 6/10 Growth 6/10 Valuation 8/10 Momentum 8/10 The GF Score™ of 76/100 indicates a solid overall ranking, suggesting that PAGS has favorable long-term potential. The strongest areas are its Valuation and Momentum ranks, both rated at 8/10, reflecting favorable price dynamics and relative value. However, the Financial Strength score of 2/10 is a point of concern, indicating potential vulnerabilities in the company's balance sheet or liquidity position.
What Are Insiders Doing with PAGS Stock? Recent insider activity indicates strong confidence in PagSeguro Digital Ltd, as insiders have purchased $5.0M worth of shares over the last three months without any selling activity. This trend often signals that those with the most insight into the company's operations believe the stock is undervalued and poised for growth, which could further bolster investor sentiment.
The absence of selling activity suggests that insiders are optimistic about the company's future performance and share price appreciation, reinforcing the idea that PAGS may be well-positioned in the current market environment.
What This Means for Investors Based on the current analysis, PagSeguro Digital Ltd PAGS is considered undervalued according to the GF Value™ assessment. The significant difference between the current price and the estimated fair value, combined with positive insider activity, indicates that there may be potential for future appreciation in stock value. However, investors should remain cautious and consider the company's financial strength and broader market conditions.
For the complete analysis, visit the PagSeguro Digital Ltd PAGS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is PAGS's GF Score™?
PAGS has a GF Score™ of 76/100, indicating it has above-average potential for long-term returns based on GuruFocus' comprehensive scoring system.
Is PAGS overvalued or undervalued?
PAGS is currently undervalued, with a GF Value™ estimate indicating a 23.4% upside potential based on its intrinsic value assessment.
What is PAGS's P/E ratio?
PAGS has a P/E TTM of 8.8x, which is below its 5-year median P/E of 10.8x, supporting the view that the stock is undervalued relative to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
In the latest close session, PagSeguro Digital Ltd. (PAGS - Free Report) was up +2.12% at $11.58. This move outpaced the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.36%.
The company's stock has climbed by 17.76% in the past month, exceeding the Business Services sector's gain of 1.65% and the S&P 500's gain of 5.98%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.4, signifying a 29.03% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 22.01% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.66 per share and a revenue of $4.12 billion, signifying shifts of +16.9% and +12.65%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% higher. PagSeguro Digital Ltd. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, PagSeguro Digital Ltd. is holding a Forward P/E ratio of 6.82. Its industry sports an average Forward P/E of 11.15, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.
It is also worth noting that PAGS currently has a PEG ratio of 0.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.93.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
PagSeguro Digital Ltd. (PAGS - Free Report) ended the recent trading session at $10.76, demonstrating a -2.98% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.64%.
The stock of company has risen by 11.35% in the past month, leading the Business Services sector's gain of 3.68% and the S&P 500's gain of 8.59%.
The investment community will be closely monitoring the performance of PagSeguro Digital Ltd. in its forthcoming earnings report. On that day, PagSeguro Digital Ltd. is projected to report earnings of $0.4 per share, which would represent year-over-year growth of 29.03%. In the meantime, our current consensus estimate forecasts the revenue to be $1.01 billion, indicating a 22.01% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.66 per share and revenue of $4.12 billion, which would represent changes of +16.9% and +12.65%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.61% upward. Right now, PagSeguro Digital Ltd. possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 6.67. This represents a discount compared to its industry average Forward P/E of 12.08.
Also, we should mention that PAGS has a PEG ratio of 0.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 0.95 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
PagSeguro Digital Ltd. (PAGS - Free Report) closed at $10.11 in the latest trading session, marking a -1.37% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.49%. Elsewhere, the Dow saw a downswing of 0.05%, while the tech-heavy Nasdaq depreciated by 0.9%.
The stock of company has risen by 5.56% in the past month, leading the Business Services sector's gain of 5.05% and undershooting the S&P 500's gain of 12.8%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.4 per share. This would mark year-over-year growth of 29.03%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.01 billion, indicating a 22.01% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.66 per share and a revenue of $4.12 billion, indicating changes of +16.9% and +12.65%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 6.17. This represents a discount compared to its industry average Forward P/E of 12.01.
We can additionally observe that PAGS currently boasts a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.86.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
, /PRNewswire/ -- PagSeguro Digital Ltd. (NYSE: PAGS) ("PagSeguro") announces that it filed with the U.S. Securities and Exchange Commission (the "SEC") its Annual Report on Form 20-F for the fiscal year ended December 31, 2025.
The report is available on the SEC's website, at www.sec.gov, and on PagSeguro's Investor Relations website, at https://investors.pagbank.com/.
Shareholders can obtain copies of PagSeguro's Annual Report on Form 20-F (including its audited financial statements), free of charge, by making a request within a reasonable period of time to PagSeguro's Investor Relations Department.
About PagSeguro:
PagSeguro Digital Ltd. is a disruptive provider of financial technology solutions focused primarily on consumers, individual entrepreneurs, micro-merchants, small companies, and medium-sized companies in Brazil. Among its peers, PagSeguro is the only financial technology provider in Brazil whose business model covers all the following seven pillars:
Complete digital platform offering payments, financial services, and softwares fully integrated; Acquirer with the most widely accepted network in Brazil, offering face-to-face, online and cross-border payments; Issuer of debit, credit, and prepaid cards; Complete multiple bank for individuals and companies with one or more account holders; Investment platform offering public and private securities, investment funds, and a platform for trading stocks, REITs and others; Insurance distribution for PIX, cards, health, home, and life; and Super app with a comprehensive list of partners in telecommunications, transportation, delivery, games, and entertainment. PagSeguro is an UOL Group Company that provides an easy, safe, and hassle-free way of owning a free digital account, which is similar to a regular checking account linked to the Brazilian Central Bank's platform, with the feature of accepting payments, where its clients can transact and manage their cash, without the need to open a regular bank account. PagSeguro's. end-to-end digital banking ecosystem enables its customers to accept a wide range of online and in-person payment methods, including credit cards, debit cards, meal voucher cards, boletos, bank transfers, bank debits and cash deposits.
PagSeguro mission, under PagBank brand, is to disrupt and democratize financial services in Brazil, a concentrated, underpenetrated, and high interest rate market, by providing an end-to-end digital banking ecosystem that is safe, affordable, simple and mobile-first for both merchants and consumers.
Investor Relations:
PagSeguro Digital Ltd
[email protected]
investors.pagbank.com
Wall Street expects a year-over-year increase in earnings on higher revenues when PagSeguro Digital Ltd. (PAGS - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +29%.
Revenues are expected to be $1.01 billion, up 22% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for PagSeguro Digital?For PagSeguro Digital, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.40%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that PagSeguro Digital will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that PagSeguro Digital would post earnings of $0.42 per share when it actually produced earnings of $0.43, delivering a surprise of +2.38%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
PagSeguro Digital doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Financial Transaction Services industry, Fidelity National Information Services (FIS - Free Report) , is soon expected to post earnings of $1.28 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +5.8%. This quarter's revenue is expected to be $3.27 billion, up 29.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Fidelity National has been revised 1% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.17%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Fidelity National will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Digital banking platform surpasses R$ 42 billion in deposits and R$ 5 billion in loan portfolio, supported by the expansion of its banking platform and operating leverage during the period
, /PRNewswire/ -- PagBank (NYSE: PAGS), one of Brazil's largest digital banking platforms and a specialist in serving Brazilian entrepreneurs, announces its results for the first quarter of 2026 (1Q26).
During the quarter, recurring net income totaled R$ 575 million, up 4% year over year.
(Credit: PagBank) "We started the year with consistent results, even amid a more challenging macroeconomic environment, reinforcing the strength of our strategy and execution discipline. The period was marked by revenue expansion, the continued advancement of our banking platform, as well as efficiency gains and operating leverage," says Gustavo Sechin, CFO of PagBank.
Net revenue reached R$ 3.3 billion in the quarter, representing 6% growth compared to the same period last year, mainly driven by accelerated growth in the banking platform.
The highlight remained the strong growth in banking revenue, which expanded by 41% year over year. As a result, ROAE increased to 15.8%, up 80 basis points from the previous year, reinforcing the Company's improving profitability profile.
Deposits totaled R$42 billion, an increase of 23% year over year, reflecting customer confidence and the strength of the Company's capital structure, which is also supported by AAA ratings from the three largest global credit rating agencies. The loan portfolio reached R$ 5 billion, expanding 36% year over year, with highlights including working capital loans, which grew 191% year over year, as well as credit cards and payroll loans.
PagBank ended the quarter with 34 million customers, up 6% year over year, and a base of 6.3 million merchants and entrepreneurs. As a result, cash-in volume — which includes inflows into our PagBank accounts— totaled R$ 81 billion during the period, an increase of 11% year over year.
"We are a fully integrated banking platform specializing in Brazilian entrepreneurs. We continue to invest in products and services that help our customers thrive through their businesses. Our growth journey will continue to be driven by the simplicity, solidity, and innovation of one of the country's largest financial institutions," says Carlos Maud, CEO of PagBank.
Focused on small- and medium-sized entrepreneurs, PagBank continues to offer a comprehensive, unique platform that integrates payments, banking services, and credit solutions. Aligned with its purpose of simplifying the financial lives of people and businesses, the Company operates through an integrated digital ecosystem that supports financial management with greater efficiency, security, digitalization, and access to financial solutions.
To access PagBank's 1Q26 financial statements, click here.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including, without limitation, those regarding the Company's expectations, intentions, beliefs, or strategies, are forward-looking statements. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "should," "may," "will," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements reflect the current views of the company's management and are subject to various risks and uncertainties. They are based on numerous assumptions and factors, including economic and market conditions, industry conditions, and operational factors. Any change in these assumptions or factors may cause actual results to differ materially from the company's current expectations.
About PagBank
PagBank promotes innovative solutions in financial services and payment methods, automating the process of buying, selling, and transferring to promote the business of any person or company simply and securely. PagBank, a company of the UOL Group - Brazil's leading internet company - acts as an issuer and acquirer, offering digital accounts and complete solutions for online and in-person payments (via mobile and POS devices). PagBank also offers a wide variety of payment methods, including credit and prepaid cards, bank transfers, boleto payments, and account balances, among others. The institution's solidity is recognized with top-rated certifications (AAA / triple A) awarded by three leading global evaluators, attesting to one of the highest levels of reliability in the market — a differentiating factor that reinforces its security, robust governance, and consistent ability to meet financial obligations. PagBank (PagSeguro Internet Instituição de Pagamento S.A.) is regulated by the Central Bank of Brazil as a payment institution, issuer of electronic money, issuer of post-paid instruments, and acquirer, with partnerships with the leading card brands. Its parent company, PagSeguro Digital Ltd., is publicly traded on the New York Stock Exchange (NYSE: PAGS) and is regulated by the Securities and Exchange Commission (SEC). The distribution of mutual funds is carried out by BancoSeguro S.A., which is authorized by the Central Bank of Brazil and the Securities and Exchange Commission, and is affiliated with ANBIMA.
PagSeguro Digital Ltd. (PAGS - Free Report) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.89%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.43, delivering a surprise of +2.38%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
PagSeguro Digital, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $950.5 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 5.81%. This compares to year-ago revenues of $827.14 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PagSeguro Digital shares have added about 1.5% since the beginning of the year versus the S&P 500's gain of 8.1%.
What's Next for PagSeguro Digital?While PagSeguro Digital has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PagSeguro Digital was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.38 on $1 billion in revenues for the coming quarter and $1.66 on $4.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AtlasClear Holdings, Inc. (ATCH - Free Report) , has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +99.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
AtlasClear Holdings, Inc.'s revenues are expected to be $5.22 million, up 105.5% from the year-ago quarter.
