3 Quantum Computing Stocks That Could Be Multibaggers in the Making

Matthew Farley

Tue, Nov 28, 2023, 9:06 PM 4 min read

In addition to their disruptive nature, quantum computing stocks are also relatively less expensive to buy. This is especially true when compared to more mainstream companies like AI, cloud, or cybersecurity. This is due to the technology still being in its infancy and has yet to reach commercialization.

Due to the youth of the quantum computing market, investors who buy into the right quantum computing stocks early could see multibagger returns on their investments.

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Here are the best quantum computing stocks to consider.

Quantum Computing (QUBT)

Source: Bartlomiej K. Wroblewski / Shutterstock.com

Quantum Computing (NASDAQ:QUBT) specializes in nanophotonics-based quantum technology. The company offers commercial solutions that are cost-effective and low-power compared with its competitors.

There are some good reasons to consider adding QUBT stock to your portfolio. The company experienced an increase in sales for Q2 and the first half of 2023 compared to the previous year. Quantum Computing had a slight reduction in net loss and a decreased basic loss per share. This indicates a modest improvement in their financial performance.

Despite a significant net loss overall, the company has a solid gross margin of 47.14%. They also had a highly manageable debt with a Debt/Equity ratio of only 0.07. Additionally, the company’s market cap is relatively modest compared to its enterprise value. This means it may unlock strong gains for investors in the future.

This is the main reason for why bulls should be interested in QUBT stock due to its strong upside potential.

D-Wave Quantum (QBTS)

A digital rendering of a circuit board and digital chip in neon colors to illustrate quantum computing

Source: Shutterstock

D-Wave Quantum (NYSE:QBTS) Is a Canadian company providing quantum computing systems, software, and services.

The bull case QBTS stock rests on its impressive third-quarter financial performance with a 51% increase in year-over-year revenue and a 50% sequential increase from the previous quarter, reaching $2.6 million. The company also achieved a 53% increase in total bookings year-over-year, marking its sixth consecutive quarter of such growth.

Some Wall Street analysts are also bullish on QBTS stock. Specifically, Roth Capital analyst Suji Desilva is optimistic about the brand, maintaining a “Buy” rating in September with a one-year price target of $5.00. Desilva notes the sector’s early stage but sees “clear promise” in the growing customer interest to solve complex problems with quantum computing.

Furthermore, QBTS may be undervalued based on its price-to-sales ratio of 16.36 time sales. Additionally, a forward price-to-sales ratio of 6.14 suggests higher revenue expectations in the future.

Rigetti Computing (RGTI)

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

Source: Amin Van / Shutterstock.com

Rigetti Computing (NASDAQ:RGTI) develops quantum computers and superconducting quantum processors and provides a quantum-computing-as-a-service platform adaptable for various cloud setups.

RGTI is one of my favorite picks from this list of quantum computing stocks. The reason is that RGTI is one of the few that is charting a clear path toward breakeven profitability. For example, the company completed its first Quantum Processing Unit (QPU) sale to a national lab and signed a collaboration to develop quantum machine learning solutions last quarter.

As a penny stock, RGTI also offers investors potentially explosive total return potential. Some of this potential is acknowledged by Wall Street analyst consensus estimates. These experts forecast a 138.10% increase in stock price with an average 12-month target of $2.50, and a consensus rating of “Strong Buy.”

RGTI should therefore be heavily considered as one of those quantum computing stocks to earn multibagger returns.

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.