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 driving the future of tech and one that may face some trouble.
One Stock to Sell:
Autodesk (ADSK)
Market Cap: $53.14 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 Is ADSK Not Exciting?
- Annual revenue growth of 14% over the last five years was below our standards for the software sector
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Operating margin expanded by 4.8 percentage points over the last year as it scaled and became more efficient
Autodesk is trading at $255.94 per share, or 6.5x forward price-to-sales. To fully understand why you should be careful with ADSK, check out our full research report (it’s free).
Two Stocks to Buy:
Monolithic Power Systems (MPWR)
Market Cap: $68.9 billion
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Will MPWR Outperform?
- Impressive 25.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings per share grew by 27.5% annually over the last five years, massively outpacing its peers
- Industry-leading 43.1% return on capital demonstrates management’s skill in finding high-return investments
Monolithic Power Systems’s stock price of $1,403 implies a valuation ratio of 42.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Ross Stores (ROST)
Market Cap: $78.71 billion
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Will ROST Beat the Market?
- Same-store sales provide a solid foundation for the steady expansion of its stores
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 5.4% growth over the past two years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $244.94 per share, Ross Stores trades at 31x 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
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
