The Nasdaq 100 (^NDX) is home to some of the biggest success stories in tech and growth investing. However, certain stocks in the index face challenges like profitability concerns, rising costs, or shifts in market trends.
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 that has huge potential and two that may face some trouble.
Two Stocks to Sell:
Workday (WDAY)
Market Cap: $35.03 billion
Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Why Are We Hesitant About WDAY?
- Revenue increased by 14.1% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Estimated sales growth of 10.9% for the next 12 months implies demand will slow from its two-year trend
- Operating margin expanded by 5.9 percentage points over the last year as it scaled and became more efficient
At $143.06 per share, Workday trades at 3.3x forward price-to-sales. Check out our free in-depth research report to learn more about why WDAY doesn’t pass our bar.
Mondelez (MDLZ)
Market Cap: $75.38 billion
Founded as Nabisco in 1903, Mondelez (NASDAQ: MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Is MDLZ Not Exciting?
- Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its three-year trend
- Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 2% annually
Mondelez’s stock price of $58.88 implies a valuation ratio of 18.4x forward P/E. Dive into our free research report to see why there are better opportunities than MDLZ.
One Stock to Watch:
Vertex Pharmaceuticals (VRTX)
Market Cap: $121.1 billion
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ: VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Is VRTX on Our Radar?
- Solid 13.8% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Strong free cash flow margin of 24.7% enables it to reinvest or return capital consistently
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Vertex Pharmaceuticals is trading at $478.58 per share, or 25x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
