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Top 3 quantum computing stocks to buy

Top 3 quantum computing stocks to buy

Quantum Stocks

Quantum computing stocks are attracting investor attention as the technology advances rapidly. Three promising quantum computing stocks with strong buy ratings this summer are D-Wave Quantum, IONQ Inc., and Rigetti Computing. D-Wave Quantum’s stock has seen fluctuations, consolidating around $1.10 per share after slipping from a high of $2.40.

Despite missing revenue expectations, the company reported a 54% year-over-year increase in first-quarter bookings, reaching $4.5 million. Advancements in their Advantage2 prototype support their progress in commercializing quantum computing. IONQ is experiencing a rebound, with analysts giving it a buy rating.

The company’s EPS loss beat projections, and revenue exceeded expectations by $600,000, showcasing a 77.2% year-over-year increase. IONQ has reaffirmed its full-year revenue target between $37 million and $41 million, reflecting significant growth. The expanding customer base underscores the rising interest and potential profitability.

Rigetti Computing, offering full-stack quantum computing services, is considered oversold and presents a buying opportunity. Analysts maintain a moderate buy rating with an average price target of $3. Rigetti is expected to improve its EPS loss and anticipates revenue growth to $15.3 million in 2024, up 27.4% from the prior year.

Quantum stocks with growth potential

Projections for fiscal 2025 suggest a sizeable increase to $28.89 million, nearly an 89% rise from the expected 2024 revenue. Accenture, a global consulting firm, offers a safer, indirect approach to quantum exposure.

The company sees quantum computing as a disruptive technology that could transform sectors like agriculture, supply chain optimization, and radiotherapy. Accenture reported mixed fiscal results, with revenues of $16.5 billion, down 1% in U.S. dollars but up 1.4% in local currency compared to the same quarter last year. Honeywell International, an international conglomerate, has a subsidiary called Quantinuum, formed from the merger between Honeywell Quantum Solutions and Cambridge Quantum Computing.

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Honeywell’s deep capital and diversification give it a proven track record in scaling new technology. Quantinuum’s System Model H2 is among the most advanced commercially available quantum computers, holding 56 fully connected qubits with 99.87% two-qubit gate fidelity. Due to its consistency and longevity, IBM, a legacy tech giant, offers significant potential for tech-centric investors.

In the past four quarters, IBM posted an average earnings per share of approximately $2.44, translating to an earnings surprise of nearly 4.9%. Projected EPS for the year is expected to rise 3.3% to $9.94, with sales increasing by 2% to $63.05 billion. Quantum computing holds immense promise for the future, and these stocks represent solid opportunities for investors looking to capitalize on this revolutionary technology.

However, investors should consider the associated volatility risks before investing in quantum computing stocks.

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