The 3 Best Quantum Computing Stocks to Buy in July 2024

Matthew Farley

Tue, Jul 2, 2024, 8:02 PM 4 min read

Analysts state that the financial services sector is expected to see significant benefits from quantum computing through enhanced portfolio optimization and fraud detection capabilities. Throughout all of this, the healthcare industry is anticipated to leverage quantum computing for drug discovery and personalized medicine. As the technology evolves, we will see a transition from physical qubits to more stable, error-corrected logical qubits. This will enhance the reliability of quantum computations. So now could be a great time for investors to consider these quantum computing stocks to buy.

Here are three companies to consider.

Top Quantum Computing Stocks: IonQ (IONQ)

A concept image of a processor representing quantum computing. IONQ Stock. quantum computing stocks

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IonQ (NYSE:IONQ) is a leading developer of quantum computing systems and software. The company uses trapped ion technology to create quantum computers with high-fidelity qubits and low error rates.

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There are a few reasons I’m bullish on IONQ. The average analyst rating for IonQ is a “Buy.” The consensus price target is $16.50. Furthermore, this representing a potential upside of 141.23% from the current stock price.

Also, analysts expect IonQ’s revenue to grow at a rapid pace, with a 5-year revenue growth forecast of 95.40%. If the company can maintain this growth trajectory and improve its profitability, the stock’s valuation may become more attractive over time.

IonQ also has a strong balance sheet with a net cash position of $359.72 million, or $1.70 per share. Moreover, this provides the company with financial flexibility to invest in growth opportunities and weather potential challenges. Also, this is hedging against short-term fears of shareholder dilution through the issuance of new shares.

D-Wave Quantum (QBTS)

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D-Wave Quantum (NYSE:QBTS) is a leader in quantum computing systems, software, and services. People know this company for its quantum annealing technology.

I think that QBTS could be one of the frontrunners in the quantum computing arms race for a few reasons.

QBTS launched the fast-anneal feature. This is now available on all of its quantum processing units (QPUs) in the Leap real-time quantum cloud service. Furthermore, this feature allows users to perform quantum computations at unprecedented speeds. As a result, this will significantly reduce the impact of external disturbances such as thermal fluctuations and noise.

In the press release, QBTS states that the fast-anneal feature has generated significant interest from commercial and academic researchers who are eager to leverage its capabilities for building world-class applications, expanding benchmarking studies, and exploring the potential benefits of increased coherence in various industrial applications.

In terms of financial forecasts, D-Wave Quantum’s revenue may grow by 46.02% this year to $12.79 million, and by 101.46% next year to $25.76 million. While the company is still expected to report losses in the coming years, the magnitude of those losses is projected to decrease

Rigetti Computing (RGTI)

IBM Q System One Quantum Computer at the Consumer Electronic Show CES 2020. Quantum computing stocks.

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Rigetti Computing (NASDAQ:RGTI) is a pioneer in quantum computing, offering full-stack quantum-classical computing services. The company provides its services through Rigetti Quantum Cloud Services, serving global enterprise, government, and research clients.

The average analyst rating for RGTI is strong buy, with a consensus price target of $3.17, representing a potential upside of 217.41% from the current stock price of around $1 at the time of writing.

Also, RGTI’s revenue is expected to grow by 29.96% this year to $15.61 million and by 88.86% next year to $29.47 million. The company’s 5-year revenue growth forecast is 70.72%, indicating a strong growth trajectory.

This optimism is reflected in RGTI’s valuation, RGTI has a high price-to-sales (PS) ratio of 13 times sales and a forward PS ratio of 10, so the market is pricing in some very strong expectations for the company. This company’s valuation though is slightly on the smaller side compared with its peers in the industry, which could mean it may be an undervalued opportunity also.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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.