While the Nasdaq 100 (^NDX) is filled with cutting-edge technology and consumer companies, not all are on solid footing. Some are dealing with declining demand, high costs, or regulatory pressures that could limit future upside.
With rapid innovation comes rapid change, and StockStory is here to help you identify which Nasdaq 100 stocks are still worth your money. Keeping that in mind, here are two Nasdaq 100 stocks that have huge potential and one best left off your watchlist.
One Stock to Sell:
Fastenal (FAST)
Market Cap: $52.67 billion
Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Why Are We Cautious About FAST?
- Annual revenue growth of 5.7% over the last two years was below our standards for the industrials sector
- Earnings per share lagged its peers over the last two years as they only grew by 4.4% annually
Fastenal’s stock price of $45.82 implies a valuation ratio of 37.5x forward P/E. Check out our free in-depth research report to learn more about why FAST doesn’t pass our bar.
Two Stocks to Watch:
Take-Two (TTWO)
Market Cap: $36.42 billion
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.
Why Should TTWO Be on Your Watchlist?
- Market share is on track to rise over the next 12 months as its 27.7% projected revenue growth implies demand will accelerate from its three-year trend
- Healthy EBITDA margin of 14.9% shows it’s a well-run company with efficient processes
- Free cash flow margin increased by 4.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Take-Two is trading at $196.50 per share, or 24.7x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Broadcom (AVGO)
Market Cap: $1.49 trillion
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Is AVGO a Good Business?
- Annual revenue growth of 32.5% over the last two years was superb and indicates its market share increased during this cycle
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 76.5%
- Robust free cash flow margin of 40.4% gives it many options for capital deployment
At $322.05 per share, Broadcom trades at 23.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
