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.
With rapid innovation comes rapid change, and StockStory is here to help you identify which Nasdaq 100 stocks are still worth your money. Keeping that in mind, here is one Nasdaq 100 stock that has huge potential and two that may face some trouble.
Two Stocks to Sell:
Warner Bros. Discovery (WBD)
Market Cap: $22.61 billion
Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.
Why Do We Avoid WBD?
- Products and services have few die-hard fans as sales have declined by 4.9% annually over the last two years
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 17% annually
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Warner Bros. Discovery is trading at $9.16 per share, or 166x forward P/E. Dive into our free research report to see why there are better opportunities than WBD.
Regeneron (REGN)
Market Cap: $61.81 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?
- Sizable revenue base leads to growth challenges as its 6.7% annual revenue increases over the last two years fell short of other healthcare companies
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 12.3 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Regeneron’s stock price of $586 implies a valuation ratio of 14.6x forward P/E. To fully understand why you should be careful with REGN, check out our full research report (it’s free).
One Stock to Buy:
Axon (AXON)
Market Cap: $56.71 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Will AXON Beat the Market?
- Unit sales averaged 32% growth over the past two years and imply healthy demand for its products
- Free cash flow margin expanded by 20.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
At $728 per share, Axon trades at 122.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 176% over the last five years.
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.
