Latest news with #RigettiComputing
Yahoo
2 days ago
- Business
- Yahoo
Rigetti Computing, Inc. (RGTI) is Attracting Investor Attention: Here is What You Should Know
Rigetti Computing, Inc. (RGTI) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this company have returned +43.9% over the past month versus the Zacks S&P 500 composite's +6.4% change. The Zacks Internet - Software industry, to which Rigetti Computing belongs, has gained 12% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Rigetti Computing is expected to post a loss of $0.06 per share, indicating a change of +14.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.3% over the last 30 days. The consensus earnings estimate of -$0.05 for the current fiscal year indicates a year-over-year change of +86.1%. This estimate has changed -13% over the last 30 days. For the next fiscal year, the consensus earnings estimate of -$0.18 indicates a change of -260% from what Rigetti Computing is expected to report a year ago. Over the past month, the estimate has changed +5.9%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Rigetti Computing is rated Zacks Rank #4 (Sell). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Rigetti Computing, the consensus sales estimate of $1.91 million for the current quarter points to a year-over-year change of -38.2%. The $8.78 million and $26.76 million estimates for the current and next fiscal years indicate changes of -18.6% and +204.8%, respectively. Rigetti Computing reported revenues of $1.47 million in the last reported quarter, representing a year-over-year change of -51.8%. EPS of -$0.08 for the same period compares with -$0.14 a year ago. Compared to the Zacks Consensus Estimate of $2.46 million, the reported revenues represent a surprise of -40.16%. The EPS surprise was -60%. Over the last four quarters, the company surpassed EPS estimates just once. The company could not beat consensus revenue estimates in any of the last four quarters. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Rigetti Computing is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Rigetti Computing. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Insider
2 days ago
- Business
- Business Insider
Rigetti Computing files automatic mixed securities shelf
16:30 EDT Rigetti Computing ( RGTI ) files automatic mixed securities shelf Confident Investing Starts Here: Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
3 days ago
- Business
- Yahoo
Rigetti Computing (NasdaqCM:RGTI) Reports Turnaround With Strong Quarterly Earnings
Rigetti Computing has seen a remarkable 76% price increase over the last quarter, a period marked by significant financial and strategic events. The announcement of strong quarterly earnings, with a net income turnaround from a previous loss, has likely bolstered investor confidence. Rigetti's collaboration with QphoX B.V. and the National Quantum Computing Centre accentuates its innovation in the quantum field. Furthermore, completing a private placement supports its financial health. While the broader market displayed mixed trends due to economic policies and tech sector developments, Rigetti's advancements were likely key contributors to its robust share price gain. We've discovered 4 weaknesses for Rigetti Computing (1 is a bit unpleasant!) that you should be aware of before investing here. Outshine the giants: these 26 early-stage AI stocks could fund your retirement. Rigetti Computing has delivered a very large total return of 1,235.85% over the past year, offering context to the recent 76% quarterly share price surge. This significant one-year performance surpasses the 11.5% return from the overall US market and the 9.1% return of the US Semiconductor industry, indicating robust investor confidence. Despite facing challenges in profitability, Rigetti's expanding collaborations and the successful launch of its Ankaa-3 System position its earnings and revenue growth prospects favorably. Notably, the forecasted 41.3% annual growth in revenue highlights potential strength despite current unprofitability. Regarding the price target, Rigetti's current share price offers only a 4.52% discount compared to the analyst consensus target of US$14.80. This suggests that the recent price increase may have closed the gap toward its perceived fair value. Financial transactions, such as the private placement raising approximately US$35 million, have further fortified Rigetti's financial positioning. These developments, combined with industry advancements and an active role in specialized quantum computing projects, may influence future market perceptions and investor sentiment. Our valuation report unveils the possibility Rigetti Computing's shares may be trading at a premium. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqCM:RGTI. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
5 days ago
- Business
- Yahoo
Is It Worth Investing in Rigetti Computing (RGTI) Based on Wall Street's Bullish Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Rigetti Computing, Inc. (RGTI). Rigetti Computing currently has an average brokerage recommendation (ABR) of 1.17, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by six brokerage firms. An ABR of 1.17 approximates between Strong Buy and Buy. Of the six recommendations that derive the current ABR, five are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% and 16.7% of all recommendations. Check price target & stock forecast for Rigetti Computing here>>>While the ABR calls for buying Rigetti Computing, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. In terms of earnings estimate revisions for Rigetti Computing, the Zacks Consensus Estimate for the current year has declined 13% over the past month to -$0.05. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Rigetti Computing. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Rigetti Computing with a grain of salt. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
- Yahoo
Is Quantum Computing Stock IonQ a Good Long-Term Investment?
Quantum computers are expected to transform the computing industry in the years to come. IonQ is assembling a quantum computer network to power the next generation of the internet. The young tech company is now working to extend quantum computing to outer space. 10 stocks we like better than IonQ › Artificial intelligence has proven revolutionary, but quantum computers hold the promise of elevating the computing industry to unprecedented heights, thanks to the power of quantum mechanics. This makes companies working on the tech compelling investments. One of the prominent pure-play quantum companies is IonQ (NYSE: IONQ). It's pursuing the use of particles called ions to operate its quantum machines. This is a newer technology compared to the tried-and-true technique of superconducting qubits employed by rivals such as Rigetti Computing. IonQ's novel approach is just the start. It's aiming "to build the next generation of the Internet," according to the company's chairman and former CEO, Peter Chapman. But industry estimates indicate it will likely take years for quantum devices to evolve enough to replace today's computers. So does IonQ's technical achievements make it a worthwhile investment over the long haul as quantum machines gradually gain wider adoption? IonQ's ambition to drive the evolution of the internet requires taking on many different pieces of that ecosystem. As part of this, the company plans to be the first to have a quantum computer in space. To that end, it's acquiring Capella Space Corporation, which has been developing top-secret quantum capabilities for the U.S. government. IonQ also made a series of other acquisitions related to building out a quantum computer network. This network would act similarly to the computer networks that exist today, which make technologies such as the internet and artificial intelligence possible. By networking quantum computers together, IonQ can amplify their collective power to solve complex problems, such as improving energy grids and developing new medicines. But today, quantum networks can't extend very far. To address this, IonQ is acquiring Lightsynq Technologies, which specializes in equipment designed to extend the range quantum devices can be networked through devices called repeaters. IonQ's technology is making progress, and consequently so have its sales. The company has doubled revenue annually since becoming a public company in 2021. However, that streak may be at risk in 2025. That's because, at the end of the first quarter, IonQ's revenue totaled $7.6 million, essentially flat compared to the prior year. The stalled sales growth comes just as IonQ's new CEO, Niccolo de Masi, took the reins. Moreover, the company is not only unprofitable, its first-quarter operating loss of $75.7 million was 43% higher than the prior year's $52.9 million. Rising expenses without revenue growth is concerning. That said, in Q2 IonQ forecasts at least $16 million in sales, up from $11.4 million in the previous year. For the full year, the company expects revenue to reach between $75 million and $95 million. That's an increase of at least 74% from 2024's $43.1 million. Furthermore, IonQ exited Q1 with a strong balance sheet. Total assets were $850.1 million with a war chest of $588.3 million in cash, cash equivalents, and short-term investments. Contrast this with total liabilities of $85 million. If IonQ can achieve its forecast sales numbers for the year, that would return it to the strong sales growth rates it has seen historically. That's the kind of increase you want to see in a successful business. Yet, investing in IonQ entails significant risks. The company is pursuing so many areas to build its quantum internet and network, it may be biting off more than it can chew, and contributing to its substantial rise in costs. In addition, IonQ is not a cheap stock. You can assess its valuation with the price-to-sales (P/S) ratio. This metric measures how much investors are willing to pay for every dollar of revenue based on the trailing 12 months, and is commonly used to evaluate stocks for unprofitable companies, such as IonQ. The company's encouraging sales forecasts contributed to its stock price rising in recent weeks, which drove up its P/S multiple to 170. While not quite at the lofty levels seen at the start of the year, it's getting there. Also, at this point, investors won't know until IonQ's Q2 results whether it can return to strong year-over-year sales growth. So wait for Q2 earnings before deciding on the stock, and even then, only those with a high risk tolerance should consider buying shares. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Robert Izquierdo has positions in IonQ. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Quantum Computing Stock IonQ a Good Long-Term Investment? 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
