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. 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:
Autodesk (ADSK)
Market cap: $53.9 billion
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ:ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Why Does ADSK Worry Us?
- Annual revenue growth of 14% over the last five years was below our standards for the software sector
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.4 percentage points
Autodesk is trading at $259.90 per share, or 6x forward price-to-sales. To fully understand why you should be careful with ADSK, check out our full research report (it’s free).
Regeneron (REGN)
Market cap: $96.46 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 Are We Wary of REGN?
- Annual sales growth of 4.5% over the last five years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 15.1 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Regeneron’s stock price of $967.44 implies a valuation ratio of 11.8x forward P/E. Dive into our free research report to see why there are better opportunities than REGN.
One stock to buy:
Broadcom (AVGO)
Market cap: $1.54 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 Top Pick?
- Impressive 38% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 76.2%
- Robust free cash flow margin of 43.2% gives it many options for capital deployment
At $323.19 per share, Broadcom trades at 18.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks we like even more
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.