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.

Even among high-growth companies, some are struggling, which is why we built StockStory - to help you separate winners from losers. That said, here are three Nasdaq 100 stocks that don’t make the cut and some better choices instead.

Microchip Technology (MCHP)

Market Cap: $26.49 billion

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.

Why Do We Avoid MCHP?

1. Sales tumbled by 4.2% annually over the last five years, showing market trends are working against its favor during this cycle
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 14.5 percentage points

Microchip Technology’s stock price of $49.47 implies a valuation ratio of 25x forward P/E. Dive into our free research report to see why there are better opportunities than MCHP.

PACCAR (PCAR)

Market Cap: $51.26 billion

Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

Why Does PCAR Worry Us?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Forecasted revenue decline of 5.2% for the upcoming 12 months implies demand will fall even further
3. Earnings per share have dipped by 19.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term

PACCAR is trading at $97.63 per share, or 19.5x forward P/E. To fully understand why you should be careful with PCAR, check out our full research report (it’s free for active Edge members).

Regeneron (REGN)

Market Cap: $75.62 billion

Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ: REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.

Why Does REGN Give Us Pause?

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 4.3% for the last two years
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 23.8 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $741.72 per share, Regeneron trades at 16.6x forward P/E. Check out our free in-depth research report to learn more about why REGN doesn’t pass our bar.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.