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.
With rapid innovation comes rapid change, and StockStory is here to help you identify which Nasdaq 100 stocks are still worth your money. That said, here are two Nasdaq 100 stocks that have huge potential and one best left off your watchlist.
One Stock to Sell:
Gilead Sciences (GILD)
Market Cap: $162.4 billion
From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.
Why Is GILD Not Exciting?
- Annual sales growth of 3.6% over the last five years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Free cash flow margin shrank by 7.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Eroding returns on capital suggest its historical profit centers are aging
Gilead Sciences is trading at $131.16 per share, or 15.1x forward P/E. Check out our free in-depth research report to learn more about why GILD doesn’t pass our bar.
Two Stocks to Watch:
Palo Alto Networks (PANW)
Market Cap: $145.4 billion
Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ: PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.
Why Does PANW Stand Out?
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 27.7%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Strong free cash flow margin of 36% enables it to reinvest or return capital consistently
Palo Alto Networks’s stock price of $181.32 implies a valuation ratio of 10.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
DexCom (DXCM)
Market Cap: $22.98 billion
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Should You Buy DXCM?
- Average organic revenue growth of 12.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin increased by 26 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are growing as management capitalizes on its market opportunities
At $57.63 per share, DexCom trades at 22.1x forward P/E. 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
