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. Keeping that in mind, here is one Nasdaq 100 stock that has huge potential and two best left off your watchlist.
Two Stocks to Sell:
Starbucks (SBUX)
Market Cap: $94.77 billion
Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ:SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.
Why Do We Think SBUX Will Underperform?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Estimated sales growth of 3.1% for the next 12 months implies demand will slow from its six-year trend
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 7.1 percentage points
At $85.41 per share, Starbucks trades at 34.7x forward P/E. Check out our free in-depth research report to learn more about why SBUX doesn’t pass our bar.
Fastenal (FAST)
Market Cap: $45.45 billion
Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Why Are We Hesitant About FAST?
- Muted 4.8% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Performance over the past two years shows its incremental sales were less profitable, as its 3.7% annual earnings per share growth trailed its revenue gains
- 1.2 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
Fastenal’s stock price of $39.89 implies a valuation ratio of 33.7x forward P/E. To fully understand why you should be careful with FAST, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Amgen (AMGN)
Market Cap: $180 billion
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Are We Positive On AMGN?
- Annual revenue growth of 15.8% over the last two years beat the sector average and underscores the unique value of its offerings
- Economies of scale give it more fixed cost leverage than its smaller competitors
- AMGN 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
Amgen is trading at $338.05 per share, or 15.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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