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. Keeping that in mind, here is one Nasdaq 100 stock that has huge potential and two best left off your watchlist.
Two Stocks to Sell:
Comcast (CMCSA)
Market Cap: $120.2 billion
Formerly known as American Cable Systems, Comcast (NASDAQ: CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Are We Out on CMCSA?
- Number of domestic broadband customers has disappointed over the past two years, indicating weak demand for its offerings
- Anticipated sales growth of 2.4% for the next year implies demand will be shaky
- Low returns on capital reflect management’s struggle to allocate funds effectively
Comcast’s stock price of $32.70 implies a valuation ratio of 7.3x forward P/E. Check out our free in-depth research report to learn more about why CMCSA doesn’t pass our bar.
MicroStrategy (MSTR)
Market Cap: $110.4 billion
Founded in 1989 with an initial contract with DuPoint, MicroStrategy (NASDAQ: MSTR) started as a data mining and business intelligence software platform, but in 2020, the company made waves by investing heavily in Bitcoin.
Why Are We Hesitant About MSTR?
- MicroStrategy’s core analytics software has been eclipsed by its all-in Bitcoin strategy, leaving product innovation and enterprise deals starved for attention
- The company’s debt-financed Bitcoin buying ties shareholder fortunes to crypto swings and interest rates, amplifying downside risk and uncertainty
- On the bright side, its vast Bitcoin treasury gives Executive Chairman Michael Saylor a unique springboard to capture crypto upside and court investors seeking leveraged exposure to digital assets
MicroStrategy is trading at $390.60 per share, or 249x forward price-to-sales. Read our free research report to see why you should think twice about including MSTR in your portfolio.
One Stock to Buy:
Costco (COST)
Market Cap: $423.7 billion
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Will COST Beat the Market?
- Same-store sales growth averaged 5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Massive revenue base of $268.8 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
- ROIC punches in at 34.2%, illustrating management’s expertise in identifying profitable investments
At $955.30 per share, Costco trades at 49.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
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