Big Money Feeds, Fuels MP Materials
And the mining company with a focus on critical electric vehicle materials could rise even more due to big demand. But another likely reason is Big Money lifting the stock.
MP Materials Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And MP Materials has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals MP has made since June 2020.
The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted 11 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
1-month outperformance vs. Materials Select Sector SPDR ETF (+11.8% vs. XLB)
Outperformance is important for leading stocks.
MP Materials Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, MP Materials has been profitable and growing sales at triple-digit rates! Take a look:
Profit margin (+40.7%)
3-year sales growth rate (+147.2%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, MP has been a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
MP has a lot of qualities that are attracting Big Money. It’s made this list twice since it started trading in 2020, with its first appearance last month on 03/29/2022…and declining 4.0% since. The blue bars below show the times that MP Materials was a top pick. Given the green signals and upward trend in the previous chart, it could definitely rise more and may be a new Big Money gem:
It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if MP makes additional appearances in the years to come. Let’s tie this all together.
MP Materials Price Prediction
The MP Materials rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in MP at the time of publication.
Learn more about the MAPsignals process here.
This article was originally posted on FX Empire
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