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. Keeping that in mind, here are two Nasdaq 100 stocks that have huge potential and one that may face some trouble.
One Stock to Sell:
GE HealthCare (GEHC)
Market Cap: $29.01 billion
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Are We Cautious About GEHC?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.4%
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 1.7 percentage points
GE HealthCare’s stock price of $64.25 implies a valuation ratio of 12.6x forward P/E. If you’re considering GEHC for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Nvidia (NVDA)
Market Cap: $5.57 trillion
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
Why Is NVDA a Top Pick?
- Impressive 77.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 82.6%, which outperformed its revenue gains over the last five years
- Robust free cash flow margin of 42.5% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
Nvidia is trading at $230.74 per share, or 19.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Netflix (NFLX)
Market Cap: $298 billion
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Should You Buy NFLX?
- Global Streaming Paid Memberships have grown by 15.1% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Highly efficient business model is illustrated by its impressive 31.2% EBITDA margin, and its operating leverage amplified its profits over the last few years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $71.62 per share, Netflix trades at 16.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as ServiceNow (+164% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
