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.
Even among high-growth companies, some are struggling, which is why we built StockStory - to help you separate winners from losers. That said, here is one Nasdaq 100 stock driving the future of tech and two best left off your watchlist.
Two Stocks to Sell:
Applied Materials (AMAT)
Market Cap: $129.8 billion
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Hesitant About AMAT?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.8% for the last two years
- Forecasted revenue decline of 1.5% for the upcoming 12 months implies demand will fall off a cliff
- Free cash flow margin shrank by 2.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $162 per share, Applied Materials trades at 16.5x forward P/E. If you’re considering AMAT for your portfolio, see our FREE research report to learn more.
Fastenal (FAST)
Market Cap: $56.1 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 Do We Think Twice About FAST?
- Annual revenue growth of 3.6% over the last two years was below our standards for the industrials sector
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.8% annually
- 4.8 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
Fastenal’s stock price of $48.88 implies a valuation ratio of 45.5x forward P/E. Dive into our free research report to see why there are better opportunities than FAST.
One Stock to Watch:
Verisk (VRSK)
Market Cap: $37.42 billion
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Does VRSK Catch Our Eye?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 7.4% over the past two years
- Robust free cash flow margin of 30.5% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
- Rising returns on capital show management is finding more attractive investment opportunities
Verisk is trading at $267.86 per share, or 36.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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