The once underperforming stock for MP Materials Corp. (NYSE: MP) has taken over market discourse like a storm. The stock has had both stellar rises and disappointing fall all within 2022, which calls for its shareholders to constantly remain on edge.
MP Presents a Burning Opportunity
As mentioned above, MP has delivered to its shareholders both pleasant and displeasing shocks throughout this year. January to February saw its price plummet by nearly 33% in a single month. However, the next two months brought in an impressive 72% rise, owing to a price correction of the panicked overselling. This was once again followed by an almost 50% fall to late July, and subsequently a 20% rise to its present price of $35. MP has proven to be a true roller coaster of a stock that is highly sensitive to the broader environment and market conditions.
Surging EPS and What it Means for MP
The recent trigger for the sudden interest in MP Materials (MP) is its recent earnings result which shows highly impressive bottom line growth. MP’s quarterly EPS shot up from $0.62 to $1.41 on a year-on-year basis. EPS growth of over 125% is a difficult figure to ignore. However, knowing the sudden crashes the stock has been proven to be susceptible to, the market is still taking the news with relative caution, despite the 20% rise it has triggered. The stock has fallen from its recent peak of $39 to a present price of $33. The market is clearly concerned as to whether such a high EPS growth can be sustained into the future.
MP Materials (MP) has a recent track record of giving its shareholders a run for their money. This perhaps explains why incredible triple-digit earnings is not making a remarkable impact on the stock’s price trend.