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.
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. That said, here are two Nasdaq 100 stocks driving the future of tech and one that may struggle.
One Stock to Sell:
Autodesk (ADSK)
Market Cap: $64.03 billion
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Why Does ADSK Give Us Pause?
- Underwhelming ARR growth of 14% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 1.2 percentage points
Autodesk’s stock price of $298.78 implies a valuation ratio of 8.7x forward price-to-sales. Check out our free in-depth research report to learn more about why ADSK doesn’t pass our bar.
Two Stocks to Watch:
MercadoLibre (MELI)
Market Cap: $116.7 billion
Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
Why Are We Bullish on MELI?
- Unique Active Buyers are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Switching costs of its platform were on full display over the last two years as it not only grew engagement but also increased the average revenue per user by 13.9% annually
- Robust free cash flow margin of 32.7% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $2,302 per share, MercadoLibre trades at 23.4x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Vertex Pharmaceuticals (VRTX)
Market Cap: $105.8 billion
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ: VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Do We Like VRTX?
- 14.4% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- VRTX is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- Industry-leading 43% return on capital demonstrates management’s skill in finding high-return investments
Vertex Pharmaceuticals is trading at $416 per share, or 20.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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