The Lynas Rare Earths Ltd (ASX: LYC) share price should be on your radar as the rare earth producer is scheduled to announce its first quarter report for FY23 sometime on Thursday.
Some positive developments have unfolded for Lynas Rare Earths that could make bulls feel optimistic.
Let's cover the highlights of why investors should be following this stock closely.
What happened?
My Fool colleague Sebastian wrote on Tuesday that Lynas Rare Earths would be one to watch before the federal budget was released. Indeed, shares opened higher at $7.90 this morning, which is up from yesterday's market close of $7.87.
In the federal budget announced last night it was said the critical minerals industry will receive $50.5 million over four years to create the Australian Critical Minerals Research and Development Hub. While a further $50 million will be earmarked over three years to help young mineral projects get off the ground.
Then this afternoon JP Morgan gave Lynas Rare Earths's shares a consensus rating of neutral, as reported by The Australian.
On Friday last week, the Fool reported that the company's consensus price target is around $9.70, suggesting it may be undervalued at its current level. Other aspects of its fundamentals, including its valuation, are not so stellar. Its price-to-earnings (P/E) ratio is higher than the median of its industry peers. Its price-to-cashflow ratio is substantially higher still.
The bigger picture of what all these figures mean could start to take shape when it posts its earnings tomorrow.
Lynas Rare Earths share price snapshot
The Lynas Rare Earths share price is down 21.73% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down less at an 8.54% loss over the same period.
Shares in the company currently trade for $7.96. Earlier today, shares made an intraday high of $7.99 and a low of $7.87
The company's market capitalisation is around $7.12 billion.
