TLDR:
- D-Wave Quantum has been upgraded to Zacks Rank #2 (Buy) due to improving earnings estimates
- For fiscal year ending December 2025, D-Wave is expected to earn -$0.25 per share, a 66.7% improvement
- The company has introduced a groundbreaking quantum blockchain architecture
- The new “proof of quantum” algorithm could reduce electricity consumption by up to 1,000 times compared to classical computing methods
- The quantum blockchain technology is immediately available through D-Wave’s Leap™ cloud service
D-Wave Quantum Inc. (QBTS) has recently been upgraded to a Zacks Rank #2 (Buy), reflecting growing confidence in the company’s financial outlook.
This upgrade comes as analysts have been steadily raising their estimates for the quantum computing firm over the past three months.
The Zacks Consensus Estimate for the company has increased by 33.3% during this period, signaling stronger expectations for future performance.
For the fiscal year ending December 2025, D-Wave is expected to earn -$0.25 per share.
This represents a notable improvement of 66.7% compared to the previous year’s reported figures.
The changing earnings picture is particularly important as it’s one of the most powerful forces affecting stock prices.
Zacks’ rating system is designed to harness the power of earnings estimate revisions when making investment decisions.
The system has an impressive externally-audited track record, with top-ranked stocks generating strong returns over time.
Groundbreaking blockchain architecture
In parallel with this financial upgrade, D-Wave has unveiled a groundbreaking blockchain architecture that leverages quantum computing technology.
The company published a research paper titled “Blockchain with Proof of Quantum Work,” demonstrating the first-ever distributed quantum computing deployment across four cloud-based annealing quantum computers in North America.
This new architecture introduces a “proof of quantum” algorithm that utilizes quantum computation for generating and validating blockchain hashes.
Research indicates this quantum-powered approach could dramatically reduce electricity consumption compared to classical computing methods.
The potential electricity cost savings could be up to 1,000 times less than traditional approaches.
This is particularly notable given that Bitcoin’s current power consumption rivals that of entire countries like Poland.
The system has already proven successful in real-world testing, operating across two generations of D-Wave annealing quantum computers in two countries.
It has validated transactions for thousands of blocks, demonstrating its practical viability.
The technology is immediately available through D-Wave’s Leap™ real-time quantum cloud service.
Potential applications span multiple industries including supply chain management, healthcare, identity verification, and decentralized finance.
Promising near-term prospects
The combination of improving financial outlook and technological innovation positions D-Wave Quantum as a company with promising near-term prospects.
Institutional investors typically use earnings estimates to calculate the fair value of a company’s shares.
An increase in earnings estimates in their valuation models results in higher fair value for a stock, potentially leading to increased buying pressure.
For individual investors who may find it difficult to make decisions based on Wall Street analyst ratings, the Zacks system provides a more objective framework.
The upgrade essentially reflects positivity about D-Wave’s earnings outlook that could translate into buying pressure and a potential increase in its stock price.
According to Zacks, the placement of a stock in the top 20% of their covered stocks indicates superior earnings estimate revision trends.
This makes D-Wave a solid candidate for producing market-beating returns in the near term, according to their analysis.
The new quantum blockchain technology represents a practical application of D-Wave’s quantum computing capabilities.
By successfully implementing blockchain functionality across distributed quantum systems, the company has demonstrated a viable use case for its technology.
The potential energy efficiency gains could be particularly appealing as environmental concerns around blockchain technologies continue to grow.
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