RIGETTI COMPUTING INC Receives 55% Rating from Guru Model

RIGETTI COMPUTING INC (RGTI) scores 55% in a growth model rating. While it passes several key criteria, there are notable failures that could impact investor sentiment. The assessment reveals mixed indicators necessitating cautious consideration from investors.

Date: 28-02-2025

AI Rating: 5

Overview
RIGETTI COMPUTING INC (RGTI) is highlighted in this report as a small-cap value stock within the Semiconductors industry. According to the guru growth model based on Partha Mohanram's strategy, it receives a rating of 55%, which suggests a moderate level of interest based on the firm's fundamentals and valuation but indicates that there's room for improvement to meet higher benchmarks.
Key Performance Indicators
The report presents various performance indicators pertaining to RGTI according to the growth model's criteria:
- **Book/Market Ratio**: PASS
- **Return on Assets**: FAIL
- **Cash Flow from Operations to Assets**: PASS
- **Cash Flow from Operations to Assets vs. Return on Assets**: PASS
- **Return on Assets Variance**: FAIL
- **Sales Variance**: FAIL
- **Advertising to Assets**: FAIL
- **Capital Expenditures to Assets**: PASS
- **Research and Development to Assets**: PASS
These assessments highlight the companies' strengths in certain operational metrics while pinning down areas of concern, primarily in profitability indicators and sales performance.
Potential Impact on Stock Prices
The mixed results—particularly the failures in **Return on Assets**, **Sales Variance**, and **Advertising to Assets**—could concern investors about the firm's ability to generate income effectively and support growth sustainably. Such concerns may inhibit stock price appreciation or even lead to potential declines. Conversely, the company's success in cash flow measurements suggests stability, which could ease some investor worries.
Given the nature of small-cap stocks, RGTI may experience heightened volatility as investor sentiment fluctuates based on quarterly performance. Investors should watch for developments that might improve the results in the failing criteria, which could enhance the rating in future assessments and potentially lead to stock price recovery or growth.

Stocks: RGTI