Rigetti Computing, Inc. (NASDAQ: RGTI) has recently gained significant attention, landing on Zacks.com’s list of the most searched stocks

. Given its recent market performance, investors may be wondering about its future trajectory and what factors could impact its stock price moving forward.

Stock Performance and Market Context

Over the past month, RGTI shares have declined by 20.7%, significantly underperforming the Zacks S&P 500 composite, which gained 2.6% in the same period. The broader Zacks Internet – Software industry, to which Rigetti belongs, recorded a more moderate 1.6% decline. The key question for investors is whether this underperformance signals a buying opportunity or further downside risk.

Impact of Earnings Estimates on Stock Valuation

One of the most critical drivers of a stock’s long-term performance is the revisions to earnings estimates. At Zacks, analysts prioritize changes in projected earnings over media speculation or short-term market movements. If earnings estimates rise, the fair value of the stock increases, attracting investor interest and driving the stock price higher.

For Rigetti Computing, earnings estimates have remained stable over the past month:

• Current Quarter: Expected loss of $0.08 per share, reflecting a +11.1% improvement from the same quarter last year.
• Full Fiscal Year: Estimated loss of $0.34 per share, representing a +35.9% year-over-year improvement.
• Next Fiscal Year: Expected loss of $0.28 per share, showing +17.7% improvement from this year.

While these projections indicate a positive trend in earnings improvement, the lack of upward revisions in estimates over the past 30 days suggests limited short-term catalysts for price appreciation.

Zacks Rank and Stock Outlook

Rigetti Computing currently holds a Zacks Rank #3 (Hold), meaning analysts see a neutral outlook for the stock in the near term. This ranking is derived from four key factors related to earnings estimate revisions, indicating that while the stock may not be a strong buy, it also does not face significant downward pressure based on current data.

Key Takeaways for Investors

• RGTI’s stock has underperformed the broader market recently, but its earnings estimates suggest gradual improvement.
• No significant earnings estimate revisions over the past month, which may limit short-term upside potential.
• Zacks Rank #3 (Hold) signals a neutral outlook, meaning investors may want to watch for changes in earnings trends before making a decision.

Would you consider investing in RGTI at its current levels, or are you looking for stronger bullish signals?