Dividend Stocks

3 Quantum Computing Stocks to Buy Now: May 2024

For forward-looking speculators, quantum computing stocks to buy should represent a priority. Why? It comes down to the industry’s robust potential.

According to Fortune Business Insights, the global quantum computing market reached a valuation of $885.4 million last year. By 2032, this sector could expand to $12.62 billion, representing a compound annual growth rate (CAGR) of 34.8%. That’s not all.

McKinsey & Company noted that “[q]uantum technology could create value worth trillions of dollars within the next decade.” Enhancing everything from academic research to technology startups, the underlying qubits can completely change the game. With that in mind, below are three quantum computing stocks to buy.

IBM (IBM)

Source: shutterstock.com/LCV

One of the biggest names in innovation, IBM (NYSE:IBM) technically falls under the information technology (IT) services arena. Per its public profile, the company known as “Big Blue” provides integrated solutions and services worldwide. Through its multiple segments, it offers a range of relevancies, from hybrid cloud to platforms focused on artificial intelligence. IBM’s website states that it’s attempting to deliver quantum-based utility to the world.

Financially, one of the benefits of targeting IBM as one of the quantum computing stocks to buy is consistency. In the past four quarters since the period ending March 31, 2024, the average positive earnings surprise has landed at 4.83%. That’s not exciting but it demonstrates reliability.

Over the trailing-12-month (TTM) period, IBM’s net income stood at $8.15 billion. Revenue during this time hit $62.07 billion. For fiscal 2024, experts project earnings per share of $9.12 on revenue of $57.86 billion. While that’s a bit disappointing, fiscal 2025 figures could see EPS rise to $9.58 on revenue of $60.52 billion.

In the meantime, don’t forget the forward dividend yield of 3.93%.

Alphabet (GOOG, GOOGL)

Alphabet Inc. (GOOG, GOOGL) and Google logos seen displayed on smartphones. The Google stock split is happening today.

Source: IgorGolovniov / Shutterstock.com

Based in Mountain View, California, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is no stranger to innovation. Falling under the internet content and information space, that description doesn’t do the company justice. With its subsidiaries, the company covers a range of tech-related sectors. As for quantum computing, its Google unit is busy developing hardware and software tools to push processes past classical computing limitations.

While GOOGL isn’t the most exciting idea for quantum computing stocks to buy, it’s one of the most reliable enterprises. Since the first quarter going back to Q2 2023, the tech giant’s average positive earnings surprise clocked in at 10.68%.

On a TTM basis, the company posted net income of $82.41 billion on revenue of $318.15 billion. Its profit margin stands at a stout 25.9%. Looking out to the end of fiscal 2024, analysts believe EPS will rise to $7.56 on revenue of $346.64 billion.

Last year, Alphabet posted earnings of $5.80 per share on sales of $307.39 billion. With fiscal 2025’s top line projected to hit $384.55 billion, GOOGL seems a solid bet for quantum computing stocks to buy.

Arqit Quantum (ARQQ)

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

Source: Amin Van / Shutterstock.com

Based in London, U.K., Arqit Quantum (NASDAQ:ARQQ) is incredibly risky. Trading at a little over 40 cents a pop, ARQQ is liable for extreme volatility. At the same time, the idea represents one of the more tempting plays for quantum computing stocks to buy. Arqit provides advanced cybersecurity services, which may become exceptionally relevant. After all, quantum computers can create unbreakable software encryption keys.

To be sure, Arqit requires tremendous patience. Since the start of the year, shares lost more than 16% of equity value and that’s not the worst of it. In the past 52 weeks, ARQQ suffered a decline of over 62%. You’ve got to be aware of the risks.

On a TTM basis, Arqit posted a net loss of $73.91 million on modest revenue of $640,000. However, for fiscal 2024, analysts believe that the top line could skyrocket to $20.04 million. If so, that would represent a growth rate of nearly 2,792. For fiscal 2025, revenue could rise to $35.4 million. It’s worth looking into if you wish to gamble.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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