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.

Investing in Nasdaq 100 stocks isn’t just about picking big names - it’s about finding the right ones, and that’s where StockStory comes in. That said, here are three Nasdaq 100 stocks to avoid and some better opportunities instead.

NXP Semiconductors (NXPI)

Market Cap: $53.06 billion

Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.

Why Does NXPI Fall Short?

1. Annual sales declines of 3.3% for the past two years show its products and services struggled to connect with the market during this cycle
2. Forecasted revenue decline of 1.6% for the upcoming 12 months implies demand will fall even further
3. 10.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

NXP Semiconductors’s stock price of $208.80 implies a valuation ratio of 17.2x forward P/E. If you’re considering NXPI for your portfolio, see our FREE research report to learn more.

Starbucks (SBUX)

Market Cap: $100.1 billion

Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.

Why Does SBUX Give Us Pause?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its six-year trend
3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 3.6 percentage points

At $88.16 per share, Starbucks trades at 27.9x forward P/E. Read our free research report to see why you should think twice about including SBUX in your portfolio.

CSX (CSX)

Market Cap: $59.98 billion

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.

Why Do We Avoid CSX?

1. Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 7.4% annually, worse than its revenue
3. Free cash flow margin dropped by 15.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

CSX is trading at $31.93 per share, or 17.4x forward P/E. To fully understand why you should be careful with CSX, check out our full research report (it’s free).

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.