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.
Even among high-growth companies, some are struggling, which is why we built StockStory - to help you separate winners from losers. That said, here are two Nasdaq 100 stocks that have huge potential and one best left off your watchlist.
One Stock to Sell:
CSX (CSX)
Market Cap: $83.1 billion
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ:CSX) is a transportation company specializing in freight rail services.
Why Is CSX Risky?
- Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Sales were less profitable over the last two years as its earnings per share fell by 3.4% annually, worse than its revenue declines
- 15.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
CSX is trading at $44.62 per share, or 23x forward P/E. Read our free research report to see why you should think twice about including CSX in your portfolio.
Two Stocks to Watch:
Apple (AAPL)
Market Cap: $4.07 trillion
Creator of the iPhone and App Store, Apple (NASDAQ:AAPL) is a legendary developer of consumer electronics and software.
Why Should AAPL Be on Your Watchlist?
- Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
- Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
- The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.
At $276.48 per share, Apple trades at 30.9x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.
Analog Devices (ADI)
Market Cap: $193.8 billion
Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Why Are We Fans of ADI?
- Market share has increased this cycle as its 14.9% annual revenue growth over the last five years was exceptional
- Offerings are mission-critical for businesses and lead to a premier gross margin of 60.3%
- Strong free cash flow margin of 36.7% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
Analog Devices’s stock price of $395.34 implies a valuation ratio of 33.1x 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 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.