Is Most-Watched Stock Rigetti Computing, Inc. (RGTI) Worth Betting on Now?

Core Viewpoint - Rigetti Computing, Inc. (RGTI) has shown a stock return of +4.2% over the past month, slightly underperforming the Zacks S&P 500 composite's +4.3% change, while the Zacks Computer - Software industry gained 3.9% during the same period [1] Earnings Estimate Revisions - The consensus estimate for Rigetti Computing's current quarter indicates a loss of $0.08 per share, reflecting a year-over-year change of +38.5% [4] - The consensus earnings estimate for the current fiscal year is -$0.34, showing a year-over-year change of +35.9%, which has remained unchanged over the last 30 days [4] - For the next fiscal year, the consensus estimate of -$0.26 indicates a change of +23.5% from the previous year, with no changes in the estimate over the past month [5] Revenue Growth - The consensus sales estimate for the current quarter is $3.33 million, representing a year-over-year change of +7.1% [8] - The sales estimates for the current and next fiscal years are $12.82 million and $19.09 million, indicating changes of +6.8% and +48.9%, respectively [8] Last Reported Results and Surprise History - In the last reported quarter, Rigetti Computing generated revenues of $3.09 million, a year-over-year decline of -7.2%, with an EPS of -$0.07 compared to -$0.13 a year ago [9] - The reported revenues were below the Zacks Consensus Estimate of $3.53 million, resulting in a revenue surprise of -12.58%, while the EPS surprise was +30% [10] - Over the last four quarters, the company surpassed EPS estimates only once and did not meet consensus revenue estimates in any of the last four quarters [10] Valuation - Rigetti Computing is graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for determining whether the stock is overvalued, fairly valued, or undervalued [12][13] Conclusion - The Zacks Rank 3 suggests that Rigetti Computing may perform in line with the broader market in the near term, despite the mixed signals from earnings estimates and valuation metrics [15]