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 best left off your watchlist.
Two Stocks to Sell:
Electronic Arts (EA)
Market Cap: $50.44 billion
Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.
Why Is EA Not Exciting?
- Muted 3% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.6%
- Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 3.2 percentage points
Electronic Arts’s stock price of $201.53 implies a valuation ratio of 17x forward EV/EBITDA. Read our free research report to see why you should think twice about including EA in your portfolio.
PACCAR (PCAR)
Market Cap: $59.06 billion
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Does PCAR Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 11.4% annually over the last two years
- Earnings per share have dipped by 30.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $111.76 per share, PACCAR trades at 18.8x forward P/E. If you’re considering PCAR for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
DoorDash (DASH)
Market Cap: $68.28 billion
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.
Why Is DASH a Top Pick?
- Orders have grown by 22.9% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Market share will likely rise over the next 12 months as its expected revenue growth of 25.5% is robust
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 179% outpaced its revenue gains
DoorDash is trading at $156.80 per share, or 17.5x forward EV/EBITDA. Is now a good time to buy? Find out in our full 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
