Is Endava plc (DAVA) the Undervalued Quantum Computing Stock to Buy Now?
Quantum computing is turning into an essential component of the upcoming technological revolution. It is resolving problems all around in sectors spanning security, finance, medicine, and AI. In comparison to regular computers, quantum systems use qubits that work in multiple states at once, which massively boosts processing power. This does show advancements in the field of science, and as such, it is encouraging new markets. PwC reports that quantum tech is making waves in research, operations, and infrastructure, with specific attention on optimization, system simulation, and modeling risks.
According to ResearchAndMarkets, while the quantum industry reached $1.9 billion in 2024, it is expected to hit $7.5 billion by 2030, with a CAGR of 28.7%. Forbes stated that this strong growth comes from institutional support, public-private teamwork, and hardware breakthroughs. Moreover, venture capital invested $1.5 billion into 50 quantum startups last year, almost twice the amount in 2023. The Forbes Technology Council adds that this demonstrates that investors are putting more trust in the quantum sector. Thus, it has the potential to reshape not just the IT sector but global markets too, from portfolio management to trading algorithms, by cutting computation time and risks.
In response to this technology, the stock market has been skeptical, as it is uncertain when quantum computing will go mainstream. However, recent advances in error reduction, logical qubit formation, and hybrid quantum-classical models have boosted optimism among investors. These hybrid approaches are already helping with logistics, artificial intelligence, and materials research. Forbes claims that this shift is a complete redefinition of tech investing, with quantum moving from an accessory to a necessity in the tech sector.
In contrast, in the financial sector, the industry is getting attention despite being relatively new and in development. IDTechEx predicts it can reach $10 billion worth of value in two decades, driven by the active advancements of quantum startups. With over 50 of these startups turning profitable in just four years, companies are now rapidly adopting the technology, with a rise in demand for quantum programs. Meanwhile, an IDC report in April showed PC shipments grew 4.9% in Q1 2025, unaffected by the rising tariffs. Furthermore, even governments all around the globe are investing in this sector, led by America, Germany, China, and Britain. The UN even declared 2025 the International Year of Quantum Science and Technology.
Looking ahead, the technological progress keeps investors hooked with new materials like niobium. When paired with surface encapsulation methods, it has stretched coherence times to 600 microseconds, making qubits perform better. In addition, better chip designs and error correction are helping quantum systems move from labs to real applications. These improvements should cut costs and boost reliability, bringing quantum's theoretical potential into practical use.
To curate our list of the 10 Undervalued Quantum Computing Stocks to Buy Now, we relied on the Finviz screener to find the biggest Quantum Computing companies. We narrowed down these companies by choosing ones that have their forward price-to-earnings multiple less than 15, as of the time of writing this article. Next, we ranked the shortlisted stocks based on the hedge fund sentiment surrounding each stock, as per Insider Monkey's Q4 2024 database. The 10 Undervalued Quantum Computing Stocks to Buy Now are listed in ascending order based on the number of hedge fund holders having stakes in the respective stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A tech expert in a suit presenting a new IT strategy in front of a corporate audience.
Endava plc (NYSE:DAVA) is a renowned tech company, providing services including digital speed-up, engineering, and modern managed services in North America, Europe, and the UK. It works with many industries like finance, healthcare, automotive, and telecom. The company's quantum division, Dava.X Quantum, is producing hybrid solutions that blend traditional and quantum computing to solve difficult business challenges. The company works with quantum leaders worldwide to create custom solutions that solve real problems.
For Q2 FY2025 ended December 31, 2024, Endava plc (NYSE:DAVA) posted a revenue of $248.4 million, a 6.6% rise from last year (9.1% in constant currency). The company's adjusted profit before tax was $27.7 million with an 11.2% margin, while adjusted earnings per share were at $0.38, exceeding expectations. The top 10 clients of Endava plc (NYSE:DAVA) made up 36% of revenue, with average spending up 13% year over year to $9 million.
Meanwhile, the company's business in North America jumped 32.7%, thanks to the acquisition of GalaxE. The UK and Europe saw small growth, while other regions fell 43.5% due to economic slowdown. Additionally, Banking & Capital Markets did well with 43.6% growth, though Payments and TMT struggled. Moreover, the company's Healthcare portfolio was able to grow due to GalaxE's contribution. Furthermore, Endava just started its first-ever share buyback program that is worth $100 million.
Endava plc (NYSE:DAVA)'s Dava.X Quantum plays a key role in the company's future plans, helping businesses prepare for quantum computing with better security and hybrid applications. As such, for Q3 FY2025, the company expects revenue between $251-254 million, with earnings of $0.39-0.41 per share. For the full year, it is looking at $1.01-1.02 billion in revenue and earnings of $1.52-1.56 per share. However, the company's weakness in the UK and instability in the global market are posing challenges.
Overall, DAVA ranks 9th on our list of undervalued quantum computing stocks to buy now. While we acknowledge the potential of DAVA as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DAVA but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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DENVER & MIAMI--(BUSINESS WIRE)--The Western Union Company ('Western Union') (NYSE: WU) and International Money Express, Inc. ('Intermex') (NASDAQ: IMXI) today announced they have entered into a definitive agreement under which Western Union will acquire Intermex in an all-cash transaction at $16.00 per IMXI share, representing a total equity and enterprise value of approximately $500 million. This acquisition strengthens Western Union's retail offering in the U.S., expands market coverage in high potential geographies, and is expected to accelerate digital new customer acquisition. Intermex's deep market knowledge, strong agent relationships, and operational expertise further positions Western Union to capture growth in the Americas. 'This acquisition is a disciplined, strategic step that strengthens our North America operations and expands our presence with key consumer segments across the U.S.' said Devin McGranahan, President and CEO of Western Union. 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To listen to the webcast, please visit the Investor Relations section of Western Union's website or use the following link: Webcast Link. Alternatively, participants may join via telephone. In the U.S., dial +1 (719) 359-4580, followed by the meeting ID, which is 997 4264 7200, and the passcode, which is 985803. For participants outside the U.S., dial the country number from the international directory, followed by the meeting ID, which is 997 4264 7200, and the passcode, which is 985803. About Western Union The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. 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Words such as 'expects,' 'intends,' 'targets,' 'anticipates,' 'believes,' 'estimates,' 'guides,' 'provides guidance,' 'provides outlook,' 'projects,' 'designed to,' and other similar expressions or future or conditional verbs such as 'may,' 'will,' 'should,' 'would,' 'could,' and 'might' are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the 'Company,' 'Western Union,' 'we,' 'our,' or 'us') should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2024 and in our subsequent filings with the Securities and Exchange Commission. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement. Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: changes in economic conditions, trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate; interruptions in migration patterns or other events, such as public health emergencies, any changes arising as a result of policy changes in the United States and/or other key markets, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies, including cryptocurrencies; geopolitical tensions, political conditions and related actions, including trade restrictions, tariffs, and government sanctions; deterioration in customer confidence in our business; failure to maintain our agent network and business relationships; our ability to adopt new technology; the failure to realize anticipated financial benefits from mergers, acquisitions and divestitures; decisions to change our business mix; exposure to foreign exchange rates; changes in tax laws, or their interpretation, and unfavorable resolution of tax contingencies; cybersecurity incidents involving any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives; our ability to attract and retain qualified key employees; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations, and industry practices and standards; developments resulting from governmental investigations and consent agreements with, or investigations or enforcement actions by, regulators and other government authorities; liabilities resulting from litigation; failure to comply with regulations and evolving industry standards regarding data privacy; failure to comply with consumer protection laws; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to comply with working capital requirements; changes in accounting standards, rules and interpretations; and other unanticipated events and management's ability to identify and manage these and other risks. 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Information about the interests of the directors and executive officers of Intermex and other persons who may be deemed to be participants in the solicitation of stockholders of Intermex in connection with the Transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the Proxy Statement related to the Transaction, which will be filed with the SEC. Additional information about Intermex, the directors and executive officers of Intermex and their ownership of Intermex common stock can also be found in its Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 27, 2025, and its definitive proxy statement, as amended, as filed with the SEC on May 12, 2025, and other documents subsequently filed by Intermex with the SEC. Free copies of these documents may be obtained as described above. 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The Smartest High-Yield Energy Stocks to Buy With $2,000 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
