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?

1. 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
2. Forecasted revenue decline of 1.5% for the upcoming 12 months implies demand will fall off a cliff
3. 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?

1. Annual revenue growth of 3.6% over the last two years was below our standards for the industrials sector
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.8% annually
3. 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?

1. Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 7.4% over the past two years
2. 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
3. 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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