Is MP Stock a Buy, Hold or Sell After Its 31.2% One-Year Decline?

MP Materials MP shares have fallen 31.2% in the past year, underperforming the industry's 60.8% growth. The Zacks Basic Materials sector rose 12.7% while the S&P 500 gained 16.2% in the same timeframe. Rare earth peers USA Rare Earth, Inc. USAR and Lynas Rare Earths Limited LYSDY have declined 49.2% and 32.6%, respectively. MP's 1-Year Price Performance vs. Industry, Sector, S&P 500 & PeersZacks Investment Research Image Source: Zacks Investment Research MP Materials Trading at a Premium MP Materials currently trades at a forward 12-month price/sales multiple of 12.52X, significantly above the industry average of 1.65X. The stock carries a Value Score of F, indicating a stretched valuation.