REA — analysis and forecast
🧬 Faro multibagger DNA
Does it look today like the big multibaggers (×10, ×100) did when they started? 7 traits measured with public data.
Strongest: Room to grow and Balance sheet. Most lacking: Business quality and Sales engine.
Worth $159 M. To grow ×10 it would have to reach $1.6 B.
Not enough sales data.
Gross margin 0%, operating margin 0%, return on equity —.
No free cash flow data.
Trades at —× sales with no growth to back it.
Net cash equal to 48% of its value.
No recent federal contracts on the radar · inside a Faro megatrend · insiders own 50.8%.
⏱️ Timing (not scored): near its 12-month low · below its 200-day average · trailing the S&P 500 by 69 points over 12 months.
Built on the traits of 365 stocks that went ×100 (Mayer, 1962–2014) and 464 that went ×10 (Yartseva, 2009–2024), plus the Faro thesis. It does not predict the price and is not a recommendation. How it works and the ranking →
🔢 What the numbers say
The last 12 months, in plain words
- Over the 125 sessions we have for REA it moved -59.3%.
- Today it sits 72.0% below its 52-week high ($27.60) and +12.0% above the low ($6.91).
- The worst drop from a peak in those 12 months was 75.0%. Anyone who bought at the top had to sit through that.
- It rose on 46% of days. Best day: +19.4%. Worst day: -16.1%.
- Annual volatility around 90%: in a normal year a ±90% move would not be unusual for this stock (the S&P 500 usually runs 15–20%).
🗓️ Forecast by horizon
Directional bias · probability of rising · expected price and likely range (68%)
| Horizon | Bias | Prob. up | Expected price | 68% range |
|---|---|---|---|---|
| 1 day | Bearish | 40% | $7.72 -0.2% | $7.29 – $8.17 |
| 3 days | Bearish | 38% | $7.68 -0.7% | $6.96 – $8.48 |
| 1 week | Bearish | 38% | $7.65 -1.2% | $6.74 – $8.69 |
| 15 days | Bearish | 36% | $7.56 -2.4% | $6.31 – $9.05 |
| 1 month | Strongly bearish | 33% | $7.36 -4.9% | $5.67 – $9.55 |
| 3 months | Strongly bearish | 25% | $6.66 -13.9% | $4.24 – $10.46 |
Recent momentum: -23.3% over 20 days · -41.6% over 60 days. The further out the horizon, the wider and more uncertain the forecast.
📈 Probability cone
📜 Government contracts
We have no notable federal contract on file for REA. You can look it up yourself at USASpending.gov or in the Government Sources hub.
📚 Go deeper: Faro Library reports
PDF reports built from official filings. Your first one is free, no email; then $1.99 each or all 33 for $25 — included in Navigator and Admiral.
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Could REA be the next NVIDIA?
Its Faro multibagger DNA is 53/100 (mixed): it measures how much it looks today like the big multibaggers did when they started (size, sales growth, quality, cash, price versus growth, balance sheet and public contracts). To grow ×10 it would need to be worth about 10 times today's value. Not a prediction or a recommendation.
How much has REA fallen in the last year?
Rare Earths Americas (REA) is down 59.3% over the period with data and trades at $7.74, 72.0% below its 52-week high ($27.60). 52-week range: $6.91 – $27.60.
How volatile is REA stock?
Its annualized volatility is around 90% and its worst drop from a peak over the last year was 75.0%. For reference, the S&P 500 usually moves 15–20% a year.
Does REA have U.S. government contracts?
There is no notable federal contract in Faro's register. You can search USASpending.gov.
Is now a good time to buy REA?
Nobody can know that for sure and this page is not a buy recommendation. What the data shows today: bearish technical bias, RSI 47, price below its 50-day average and an estimated 33% probability of being higher in 1 month. Use it as a starting point for research, not as a signal.
🧠 How it is calculated
The verdict combines trend (20/50/200 moving averages), momentum (RSI, MACD), mean reversion (Bollinger Bands), conviction (volume) and historical drift, weighted differently for each horizon. Uncertainty is modeled with a lognormal probability cone (geometric Brownian motion). This is statistical analysis, not a crystal ball.
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