The Only 5 Quantum Stocks I'm Watching Right Now

Quantum computing is shaping up to be one of the biggest opportunities of the next decade, but the stocks getting all the attention aren't necessarily the best ones to buy right now. So today, I'm doing two things. First, I'm walking you through the hall of shame of quantum stocks to avoid, then I'll share five better ways to invest in this exciting growth trend. If you find this type of content useful, then do yourself a favor and hit that like button. It tells YouTube to put more no-nonsense stock research like this in your feed. Uh before we get to the five stocks worth buying, we need to talk about the ones that aren't. That brings us to the quantum computing hall of shame. I'll start with IonQ with the symbol IONQ. Before I dig in, I should remind you this video is presenting uh for educational purposes only. It's not personalized investment advice, so always do your own due diligence before buying or selling any stocks. And I should also tell you who I am. I'm Steve Wright, my surname, but all my friends call me Wrighty. I've been investing for over 40 years and currently a partner at Wall Street Zen, where our quant rating system analyzes wide array of data points to pinpoint the best investment opportunities from the worst. And quantum right now has a lot in both buckets, so we will start with the bad news first, which brings us back to IonQ, the single most hyped pure quantum play on the market. I ran it through our quant rating system, which evaluates 115 different factors spanning categories like growth, sentiment, value, and more and distills it down into an easy-to-understand letter grade of A to F. There's no ambiguity about IonQ's grade. It earns a lowly F rating, which amounts to a strong sell recommendation. It happens to be one of the lowest rated stocks in our model, down in the bottom 2% of the greater than 4,600 stocks we track. That is painfully bad because F-rated stocks have averaged a nearly 13% loss going back over 20 years. Note that the overall Zen ratings is further broken down into seven individual component grades spanning areas like financials growth sentiment value and more. Things look grim for IonQ in uh several of these areas. For starters, financials rating lands in the bottom 15% of all stocks tracked. Value is the bottom 6% and safety is even lower in the bottom 2%. That is truly abysmal, but I n Q is not the only quantum darling with shockingly bad fundamentals. And that brings us around to D-Wave with the symbol of QBTS. Now, yet another pathetic F-rated stock that warns investors to run for the hills. Their best component grade is the sentiment score in the 51st percentile. The rest is all downhill from there. Bottom 22% for growth, bottom 7% for value, and bottom 6% for safety. Now look, any of these stocks could rip higher for a while based on hype alone. That's the seduction of these kind of stocks, but once folks come to their senses by looking at the actual fundamentals, and they always get there in time, then the bottom usually drops out. So how do you play quantum without getting blown up? Well, you do what the smart money has always done in any type of new gold rush. You don't bet on which minor strike it rich. Instead, you buy the picks and shovels, the profitable businesses quantum has to run through no matter which startup wins. I found five perfect examples. Let's forge ahead with these bullish setups. But first, a quick heads-up. If you want to discover more stocks aligned with market trends, then the best thing you can do right now is sign up for my next live training session this coming Monday. The focus is on timely market insights plus my top picks. It's totally free, but you do need to sign up. So do that now to join me this coming Monday 7:00 p.m. Eastern time. Just go to wallstreetsurvivor.com/live. Now for the good stuff, the picks and shovels plays most likely to profit from the quantum gold rush. We'll start with Ciena with the symbol of CIEN. And the angle here is one most investors totally miss. A powerful enough quantum machine could crack the security protecting much of the world's data, and that has governments and enterprises scrambling for a fix right now. Ciena is right in the middle of that fix. They're a giant in fiber optic networking, and they've been building quantum-secured networking, quantum key distribution, and post-quantum cryptography baked right into their optical systems. Now, Ciena quietly sells the shield against one of the biggest issues quantum computing could cause. Business is most certainly booming, which shows up in their string of four straight earnings beats. And now the street expects blistering earnings growth of nearly 150% this year over last. Cools down to 27% a year going forward, but that is nearly three times faster than the average company. Many Wall Street analysts are lined up behind this stock, and we're not talking about nobodies here. The most bullish voice is Mike Genovese of Rosenblatt, a top 1% analyst based upon his historical stock-picking track record. So, when he says shares could rally another 70% this year, well, it often pays to listen. Now, let's see how it stacks up in our Zen ratings quant model. Now, Ciena earns a rating of B, which amounts to a buy recommendation. That's because it ranks in the top 8% of all stocks based upon that full 115-factor fundamental review. Again, top 8% not bottom 2% like the Hall of Shame picks, right? As for the component grade, Ciena scores in the top 13% for safety and top 12% for financials. Yeah, not the bottom. Top 10% for momentum, and yeah, I'm saving the best for last with a growth grade in the top 1%. This foreshadows likely more earnings beats ahead. The uh soft spot for uh CNI is the lower grade for value. That is often the case for serious growth stocks like Ciena, but as long as they keep pounding out more earnings beats, then this is likely an outperformer to put on your radar screen now. Our next company doesn't just protect against the quantum future, it's building the engine that actually makes it run right now. The next pick on the list is Nvidia. I think you might have heard of it before. Yeah, the AI chip king. But here's what flies under the radar. Nvidia has quietly become the connective tissue of the whole quantum industry. Through its uh CUDA-Q platform and NVQ link effort, it's building the bridge between its own chips and quantum hardware. And get this, 17 different quantum hardware builders are plugging right into it. Whichever quantum machine win, odds are it will run right alongside Nvidia. That's the very essence of a picks and shovels play. The business barely needs an introduction, but here's what matters. This is a cash machine at a scale almost no one in history has matched. Better yet, it keeps proving it, topping Wall Street earnings estimates quarter after quarter after quarter after quarter going back for quite a few years. So, this isn't a speculative stock hoping to deliver profit someday. It's already delivering serious cash by the truckload. Okay, this explains why the street is about as bullish on Nvidia as it gets. Not a single sell recommendation in the bunch. Even after all the gains that it's had, its fair value price target implies well over 50% upside in the coming year. I should note that the street high target price implies over 135% upside potential. Wall Street never sleeps. sure to check the latest recommendations and target prices for any stock on our quote pages at wallstreetszen.com. All that is well and good, but what does our quant model have to say about Nvidia? So, here we have a B-rated stock that's uh but really I should call it B+ cuz it ranks in the top 6% of all stocks we track. Note that the threshold become an A-rated stock is top 5%. So, Nvidia is knocking on the door quite loudly. The component grade solidify the attractiveness of these shares. Value comes in the top 16% of all stocks tracked. This is the most shocking part given how much shares have rallied over the years. It's really more of a statement how earnings keep pressing higher, making it still a value stock at this time. On top of that, we have a top 8% for AI timeliness score and then uh top 1% for financial strength. Again, this company is an outright cash printing machine. The only real sauce about is safety, which comes in pretty low. That's the honest trade-off in a stock that swings as hard in both directions that this one does as does pretty much everything in the semiconductor space. But in Nvidia, you're getting company that already dominates AI. And now you basically get a free option to play right alongside all their quantum growth, too. And heck, given recent share price weakness, it's actually a value stock this time. What is not to like about this setup? Next up is L3 Harris with a symbol of LHX. The stock recently got beaten down pretty hard, making an interesting buy the dip opportunity. Plus, as I will explain, you get a bonus gift with these shares as well. L3 Harris is a tech heavyweight for the defense industry. They make mission-critical communications, sensors, and systems for military and government. The quantum angle is real. They've partnered with a specialist on quantum radio frequency sensing technology that detects and identifies signals in a world of drones, GPS spoofing, and electronic warfare. This is a quantum with real government contracts behind it. Get this, L3 Harris has topped earnings estimates for 14 quarters in a row, exactly the kind dependable execution that you should pretends more of the same in the quarters ahead. On top of that, earnings are forecast to keep growing much faster than its defense peers. Our system also likes this setup. L3 Harris earns its then rating a B, a buy recommendation, because these stocks historically outperform the market by a wide margin. But once again, this is more like a B+ rating as it scores in the top 6% of all stocks tracked for its sparkling fundamental profile. As we look into the component grades, we see strength across the board. Sentiment and the AI timeliness grade both rank in the top 19% of all stocks tracked. Then we have top 12% for growth, which increases the odds of more earnings beats ahead right after the 14 in a row they've already had. And safety rounds it out also in the top 12%. This is the most conservative quantum choice today, but attractive nonetheless, especially the long-term history of earnings beats that pretends more upside ahead. Plus, it's buying on a recent dip, that's a positive. For a bonus gift that rarely comes with growing technology stocks, how about a 1.7% dividend yield that they have increased for 10 years straight. That should nicely pad your final results in these shares. Quick ask before we move on to the remaining stocks. If you're getting value from this video, then hit subscribe. That's because I publish data-driven stock analysis like this every single week, and I'd hate for you to miss the next one. Our next stock is Keysight Technologies with the symbol of KEYS. Keys, right? Every quantum computer, no matter who builds it, has to be controlled, calibrated, and tested. Keysight makes exactly that gear. In fact, they recently delivered the world's largest commercial quantum control system capable of running over 1,000 qubits, plus the design and benchmarking tools engineers use to find out if the machines uh work as intended. So, while the pure-play quantum names fight over who builds the best computer, Keysight sells the essential gear that they all need. And unlike the quantum pure plays, Keysight is a seriously profitable business right now. It's been beating the stuffing out of estimates, stringing together a run of beats, including a big one this past quarter. Now, this streak is now at 20 quarters in a row. That's five straight years of earnings consistency. Wall Street analysts are lining up behind the stock as well, giving them a strong buy consensus recommendation. But, here's what really stands out for the analysts backing Keysight ranking the top 1% of their peers, right? There's 5,200 analysts on Wall Street. This is the top 1% based upon their stock-picking performance. And each one of them is pounding the table with a strong buy recommendation. It's easy to dismiss a strong buy here or there, but when four of the best in the business are this bullish on the same name, then it pays to listen the heck up, right? Finally, Keysight scores as our first Elite 8-rated stock today. That's because after the full 115-factor review of the Zen Ratings, it scores in the top 4% of stocks because of its unique and special fundamental profile. And this comes shining through the component grades as well. Top 4% showing for momentum. Then we have a cluster in the top 3%, including sentiment, financial strength, and our artificial intelligence timeliness grade. All three in the upper echelon of all stocks. Quick word on the AI grade since most people misunderstand it. Doesn't mean Keysight is an AI company. Rather, it's our usage of AI to find stocks whose behavior it looks like names that went on to outperform in the past. So, the top 3% score for our AI timeliness grade is a powerful signal about future share price action. So, this is our first A-rated stock. Gladly, this is not the only feather in this camp. Don't forget the four different top-rated Wall Street analysts pounding the table to climb on board the stock now. Be sure to give this one a good look over to see if it earns a spot in your portfolio. Before we get to that final pick, one quick thing. If you want to stay one step ahead of the market, then join me live every Monday at 7:00 p.m. Eastern Time. That is when I share my updated market outlook and trading plan to outperform. It's also when I unveil my trade of the week based upon the proven Zen Rain's Quant model and my greater than 40 years of investing experience. It's a free event, but you do need to register. Just go to wallstreetzen.com/live or click the link in the description or scan the QR code on the screen. Just pause the video for a moment. I'll wait for you and then I look forward to seeing you there on Monday. Now, on to that final pick and it points to a company right at the center of the government's massive quantum ambitions. I did truly save the best for last as this the highest rated stock that we're going to take a look at today. It just happens to be quietly building quantum systems for the US government. That company is General Dynamics with a symbol of GD. This is one the largest defense and aerospace contractors on the planet. They manufacture Gulfstream jets, nuclear submarines, combat systems, the whole works, right? Here's the quantum tie-in. Their IT division partnered with a leading quantum company to build applications for federal and defense agencies from secure communications to advanced data analysis. Now, when Washington wants to put quantum to work, General Dynamics is one of the companies it turns to time and time again. But, the reason it makes this list is the strength of the underlying business. After a brief stumble in 2024, it has delivered six straight earnings beats with growth consistently moving higher year after year. And it pays you handsomely to own that stability. General Dynamics offers a dividend yielding around 1.7% that has never cut in over a decade. And with their growth unfolding, that dividend will no doubt increase over time as well. And this is where General Dynamics really separates itself from the pack. After comparing it to the over 4,600 stocks in the Zen Ratings model, it came in the top 3% of all stocks analyzed. This is not only an elite A rating, but the highest scoring stock in our video today, pointing towards its truly impressive fundamental prowess and likely share price outperformance in the months and years ahead. Now, watch how the component grades stack up. Value comes in the top 16% all stocks. Then we have top 12% for sentiment, top 10% for AI timeliness grade, and another top 10% for financial strength. And as you would expect from a favored government contractor, a top 3% shown for safety. The remaining two grades, growth and momentum, are all still well above average, comfortably in the top 1/3 of all stocks. So, there isn't a single weak spot anywhere in this company's profile. To be clear, this is the antithesis of your usual feast and famine quantum stock. This is the steady as you go way to play quantum with a company that's likely to consistently grow earnings and produce steady share price outperformance. So, that's the smart way to play quantum. Five steady profitable and growing companies instead of five cash burning lottery tickets. Also, remember the Zen Ratings are updated every single day. So, to get the latest data for these or any stocks, visit the free quote pages on wallstreetszen.com. Now is a good time to bookmark the site for future visits. Now, I want to hear from you. Which of these five stocks are your favorite? And are there any other top quantum stocks you think I missed? Drop it in the comments section below for the benefit of our community. And if you want to explore another tech megatrend reshaping the market right now, you'll most certainly enjoy the video that's coming up on your screen right now. Go check it out.