The Nasdaq 100 (^NDX) is known for housing some of the most innovative and fastest-growing companies in the market. But not every stock in the index is a winner - some are struggling with slowing growth, increasing competition, or unsustainable valuations.
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 two Nasdaq 100 stocks driving the future of tech and one best left off your watchlist.
One Stock to Sell:
onsemi (ON)
Market Cap: $19.21 billion
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Does ON Worry Us?
- Annual sales declines of 12.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Forecasted revenue decline of 4.5% for the upcoming 12 months implies demand will fall even further
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 4.3 percentage points
At $47.20 per share, onsemi trades at 18x forward P/E. Check out our free in-depth research report to learn more about why ON doesn’t pass our bar.
Two Stocks to Watch:
Meta (META)
Market Cap: $1.94 trillion
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Will META Beat the Market?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 14.5% annual growth in its average revenue per user
- Share buybacks catapulted its annual earnings per share growth to 31.8%, which outperformed its revenue gains over the last three years
- Strong free cash flow margin of 29.2% enables it to reinvest or return capital consistently
Meta is trading at $769.83 per share, or 16.5x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Paychex (PAYX)
Market Cap: $50.1 billion
One of the oldest service providers in the industry, Paychex (NASDAQ: PAYX) offers its customers payroll and HR software solutions.
Why Could PAYX Be a Winner?
- Sales outlook for the upcoming 12 months calls for 17.5% growth, an acceleration from its three-year trend
- Healthy operating margin of 39.6% shows it’s a well-run company with efficient processes
- PAYX is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Paychex’s stock price of $139.01 implies a valuation ratio of 7.7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 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-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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