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.
Investing in Nasdaq 100 stocks isn’t just about picking big names - it’s about finding the right ones, and that’s where StockStory comes in. That said, here is one Nasdaq 100 stock that has huge potential and two that may struggle.
Two Stocks to Sell:
PepsiCo (PEP)
Market Cap: $192.2 billion
With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.
Why Are We Wary of PEP?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Anticipated sales growth of 3.4% for the next year implies demand will be shaky
- Earnings growth underperformed the sector average over the last three years as its EPS grew by just 5% annually
At $140.72 per share, PepsiCo trades at 16.1x forward P/E. Read our free research report to see why you should think twice about including PEP in your portfolio.
GE HealthCare (GEHC)
Market Cap: $33.28 billion
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Are We Hesitant About GEHC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Projected sales growth of 4.4% for the next 12 months suggests sluggish demand
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 1.7 percentage points
GE HealthCare’s stock price of $73.85 implies a valuation ratio of 14.3x forward P/E. Check out our free in-depth research report to learn more about why GEHC doesn’t pass our bar.
One Stock to Buy:
Palantir Technologies (PLTR)
Market Cap: $418.2 billion
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Are We Bullish on PLTR?
- Billings have averaged 76.7% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- PLTR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Palantir Technologies is trading at $173.97 per share, or 45.2x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
