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.
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:
NXP Semiconductors (NXPI)
Market Cap: $58.27 billion
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Does NXPI Give Us Pause?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Anticipated sales growth of 15.7% for the next year implies demand will be shaky
At $226.62 per share, NXP Semiconductors trades at 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than NXPI.
Marriott (MAR)
Market Cap: $100.6 billion
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Why Are We Bearish on MAR?
- Softer revenue per room over the past two years suggests it might have to invest in new amenities such as restaurants and bars to attract customers
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 1.2 percentage points over the next year
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
Marriott is trading at $384.04 per share, or 30.2x forward P/E. Read our free research report to see why you should think twice about including MAR in your portfolio.
One Stock to Watch:
Vertex Pharmaceuticals (VRTX)
Market Cap: $128.9 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 Does VRTX Catch Our Eye?
- Annual revenue growth of 13.5% over the last five years beat the sector average and underscores the unique value of its offerings
- Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Vertex Pharmaceuticals’s stock price of $506.82 implies a valuation ratio of 34.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
