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. 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:

NXP Semiconductors (NXPI)

Market Cap: $56.7 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 Are We Wary of NXPI?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.1% annually over the last two years
2. Projected sales growth of 5.2% for the next 12 months suggests sluggish demand
3. Free cash flow margin dropped by 8.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

NXP Semiconductors’s stock price of $224.41 implies a valuation ratio of 17.9x forward P/E. Check out our free in-depth research report to learn more about why NXPI doesn’t pass our bar.

Biogen (BIIB)

Market Cap: $19.43 billion

Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.

Why Are We Hesitant About BIIB?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 7.4% annually over the last five years
2. Projected sales decline of 7.1% over the next 12 months indicates demand will continue deteriorating
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 15.1% annually, worse than its revenue

Biogen is trading at $132.70 per share, or 8.3x forward P/E. To fully understand why you should be careful with BIIB, check out our full research report (it’s free).

One Stock to Buy:

Broadcom (AVGO)

Market Cap: $1.36 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?

1. Annual revenue growth of 27.6% over the last two years was superb and indicates its market share increased during this cycle
2. Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 75.8%
3. Robust free cash flow margin of 41.3% gives it many options for capital deployment

At $288.95 per share, Broadcom trades at 39.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2024 "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-micro-cap company Tecnoglass (+1,754% 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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