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Rigetti Computing (RGTI) Moves 5.3% Higher: Will This Strength Last?

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Rigetti Computing, Inc. (RGTI - Free Report) shares ended the last trading session 5.3% higher at $43.91. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 175.3% gain over the past four weeks.

The sharp rally in Rigetti Computing (RGTI - Free Report) shares can be attributed to growing investor enthusiasm following the company’s announcement of $5.7 million in commercial purchase orders for its 9-qubit Novera quantum systems. The orders, placed by an Asian technology manufacturer and a U.S. national laboratory, underscored rising demand for Rigetti’s on-premises quantum hardware and validated its commercialization strategy. This milestone signaled tangible progress toward real-world adoption of Rigetti’s technology, while momentum across quantum tech names, spurred by increasing government and private-sector interest, further fueled inflows into RGTI.

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +37.5%. Revenues are expected to be $2.39 million, up 0.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Rigetti Computing, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RGTI going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Rigetti Computing is a member of the Zacks Internet - Software industry. One other stock in the same industry, Flywire (FLYW - Free Report) , finished the last trading session 5.9% lower at $12.68. FLYW has returned 1.9% over the past month.

For Flywire, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. This represents a change of -36.7% from what the company reported a year ago. Flywire currently has a Zacks Rank of #4 (Sell).


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