RGTI - 3 Quantum Computing Stocks That Could Make Your February Unforgettable
2024-02-15 12:34:58 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Carpe Diem.
Grab this prime opportunity to acquire shares of quantum computing stocks now while these companies have low valuations. Still building out their quantum computing systems, these tech firms offer potential multi-bagger returns for early investors.
The following quantum computing stocks plan to commercialize their systems for various industries. Quantum technology could revolutionize many aspects of our society, from finance to healthcare. Additionally, it may lead to breakthroughs and discoveries that would otherwise be impossible via classical computing .
Therefore, make a plan to make your February unforgettable. Seize these three quantum computing stocks to buy that hold promise for a strong future.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ: RGTI ) focuses on developing both quantum hardware and software solutions. So, RGTI stock has a broader focus, setting it apart from other companies.
This year may prove to be a pivotal one for Rigetti Computing. The company plans to enhance its quantum computing capabilities and make its technologies more accessible to customers through its Quantum Cloud Services .
It’s important to frame this effort in the context of its financial results. The company announced revenues of $3.1 million , which reflects a growth from $2.8 million in the same period of 2022. Also, the company reports a quarterly gross profit of $2.271 million. Further, total gross profit for the nine months ending September 30, 2023 amounted to $6.692 million.
During the same quarter, it announced a five-year contract with the Air Force Research Lab to provide Quantum Foundry Services. Additionally, RGTI secured a DARPA IMPAQT contract aimed at developing quantum algorithms. Both of these measures underscore its growing prominence in the defense industry.
Looking ahead, analysts expect its revenue to increase 40.06% next year to 17 million, while breakeven EPS could be realized sometime in FY2027.
D-Wave Quantum (QBTS)
D-Wave Quantum (NYSE: QBTS ) is well-known for deploying quantum annealing technology, a specialized type of quantum computing. QBTS stands out amongst peers as businesses and researchers are already using its tech for specific quantum-enhanced computation tasks.
Positive signs for the stock include a notable surge in revenue for the third quarter of 2023 , ($2.6 million), which marks a 51% year-over-year (YOY) increase. This growth is further emphasized by a substantial spike in total bookings for the quarter, reaching $2.9 million, a 53% increase YOY.
Due to these developments, the QBTS stock price has swelled 107.87% over the past year. But, it’s still far below its all-time high, suggesting additional room for the company to climb higher.
Analysts anticipate that the revenues for QBTS will hit an inflection point around FY2025, climbing to 34.65 million for a 103.80% increase from FY2024. Profitability on a GAAP EPS basis may be realized sometime around FY2027.
Picking up shares of the stock today may lock in a lower cost basis as well as substantial gains later on if these forecasts pan out as expected.
Quantum Computing (QUBT)
Finally, Quantum Computing (NASDAQ: QUBT ) is one of those lesser-appreciated names in the industry. The brand is developing hardware-agnostic software solutions, which means it can run on many types of quantum machines in the future.
QUBT’s balance sheet impresses, as it is relatively strong compared with some of its industry peers. Last quarter, Quantum Computing managed to decrease its total liabilities to approximately $8.1 million. Its total assets stand at $89.3 million, with a significant increase in cash and cash equivalents to $7.4 million.
This year and beyond, the company plans to expand its product and service offerings, including subscription access to its quantum computing solutions and deployment of quantum cybersecurity solutions.
One analyst from Wall Street is especially bullish on the stock. Edward Woo from Ascendiant Capital gave the company a price target of $8.75 as well as a “ strong buy ” rating. This represents an upside of 917.44%.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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