Down but not out, quantum computing stocks are a buy on excessive weakness.
For one, as noted by McKinsey, quantum computing could help solve the most complex problems faster than ever before. Two, as noted by Time, quantum computing could help solve “complex problems that currently take the most powerful supercomputer several years could potentially be solved in seconds.” Three, we have to remember that quantum computing could be a $1.3 trillion opportunity in the making.
It can potentially speed up new drug treatment discoveries. It may even help accelerate financing and data speed, assist with climate change issues. Furthermore, cybersecurity and other mind-boggling complex issues could be solved faster than a regular computer.
And, it’s already being referred to as “a revolution for humanity bigger than fire, bigger than the wheel,” according to analysts at Bank of America (NYSE:BAC). Even more exciting is that you can buy some of the top quantum computing stocks on the cheap.
In fact, here are three you may want to buy after the July 4th holiday.
D-Wave Quantum (QBTS)
After slipping from a high of about $2.40, D-Wave Quantum (NYSE:QBTS) has been consolidating at around $1.10. This makes it a buy. Additionally, a consensus strong buy rating on the stock has an average price target of $3.17 at the moment.
Earnings weren’t so hot. Its earnings per share loss of 11 cents was just in-line. And revenue of $2.47 million (up 56.3% year-over-year [YOY]) missed by $530,000. However, it did note that first quarter bookings of $4.5 million jumped 54% YOY.
“Coupled with the significant technical milestones we’ve achieved with the Advantage2 prototype, we believe our progress leading the commercialization of quantum through our products, customer application development and accelerating adoption is evident,” added Chief Executive Officer (CEO) Dr. Alan Baratz.
In addition, according to a new company survey of 300 businesses polled, 290 said they expect to invest $3 million to $6 million toward quantum optimization, with a potential 10x to 20x return on investment.
IonQ (IONQ)
IonQ (NYSE:IONQ) is also a buy on weakness.
After slipping from about $22 to a recent low of about $7.30, IONQ caught strong support and is just starting to pivot from over-extensions on RSI, MACD and Williams’ %R. Plus, of the analysts covering the stock, three have a buy rating.
Furthermore, the company’s EPS loss of 19 cents did beat by six cents. Revenue of $7.6 million (up 77.2% YOY) beat by $600,000. Also, it saw $300,000 in new bookings in the first quarter. IONQ reiterated its full-year revenue target between $37 million and $41 million, a solid improvement from the $22 million posted a year ago.
Benchmark analysts who have a buy rating on IONQ, recently noted the following.
“The company’s expanding customers, including Airbus, Hyundai Motors and the United States Air Force Research Laboratory, as well as recent sales in Europe, have sparked a rising interest in system purchases, especially in Europe, fueling optimism for the coming year.”
Rigetti Computing (RGTI)
We can also look at Rigetti Computing (NASDAQ:RGTI), a pioneer in quantum computing, offering full-stack quantum computing services. It’s also providing services through Rigetti Quantum Cloud Services, serving global enterprise, government, and research clients.
It’s also another one of the top quantum computing stocks to buy on excessive weakness.
For one, after slipping from $1.40 to a recent low of 96 cents, it’s oversold. Two, analysts are bullish with a consensus moderate buy rating and an average price target of $3.
Three, as noted by Investorplace contributor Josh Enomoto:
“Covering experts believe that Rigetti will post a loss per share of 41 cents. That’s an improvement over last year’s loss of 57 cents. Further, revenue could hit $15.3 million, up 27.4% from the prior year. And in fiscal 2025, sales could soar to $28.89 million, up nearly 89% from projected 2024 revenue.”
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On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.