The Nasdaq 100 (^NDX) is known for housing some of the most innovative and fastest-growing companies in the market. But not every stock in the index is a winner - some are struggling with slowing growth, increasing competition, or unsustainable valuations.
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. Keeping that in mind, here is one Nasdaq 100 stock that could lead the market and two best left off your watchlist.
Two Stocks to Sell:
Microchip Technology (MCHP)
Market Cap: $39.66 billion
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Do We Steer Clear of MCHP?
- Sales tumbled by 4.2% annually over the last five years, showing market trends are working against its favor during this cycle
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 20.6% annually, worse than its revenue
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 14.5 percentage points
Microchip Technology’s stock price of $72.75 implies a valuation ratio of 36.4x forward P/E. Dive into our free research report to see why there are better opportunities than MCHP.
Comcast (CMCSA)
Market Cap: $105.9 billion
Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Should You Sell CMCSA?
- Performance surrounding its domestic broadband customers has lagged its peers
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 11.8% for the last two years
- Rising returns on capital show management is making relatively better investments
Comcast is trading at $29.03 per share, or 7.3x forward P/E. If you’re considering CMCSA for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Copart (CPRT)
Market Cap: $38.64 billion
Starting as a single salvage yard in California in 1982, Copart (NASDAQ:CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Do We Love CPRT?
- Annual revenue growth of 15.7% over the last five years was superb and indicates its market share increased during this cycle
- Additional sales over the last five years increased its profitability as the 19.3% annual growth in its earnings per share outpaced its revenue
- CPRT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
At $39.84 per share, Copart trades at 23.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.