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.

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 is one Nasdaq 100 stock that has huge potential and two best left off your watchlist.

Two Stocks to Sell:

Starbucks (SBUX)

Market Cap: $105.2 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 Does SBUX Fall Short?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 5.1 percentage points
3. Earnings per share fell by 2.2% annually over the last six years while its revenue grew, showing its incremental sales were much less profitable

Starbucks is trading at $92.61 per share, or 34.2x forward P/E. Dive into our free research report to see why there are better opportunities than SBUX.

PepsiCo (PEP)

Market Cap: $204.7 billion

With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.

Why Are We Wary of PEP?

1. Shrinking unit sales over the past two years imply it may need to invest in product improvements to get back on track
2. Estimated sales growth of 3.1% for the next 12 months is soft and implies weaker demand
3. Efficiency has decreased over the last year as its operating margin fell by 2.1 percentage points

PepsiCo’s stock price of $149.40 implies a valuation ratio of 18.5x forward P/E. To fully understand why you should be careful with PEP, check out our full research report (it’s free).

One Stock to Watch:

Qualcomm (QCOM)

Market Cap: $171.2 billion

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ: QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.

Why Do We Like QCOM?

1. Market share has increased this cycle as its 16.6% annual revenue growth over the last five years was exceptional
2. QCOM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
3. Industry-leading 51.2% return on capital demonstrates management’s skill in finding high-return investments

At $158.90 per share, Qualcomm trades at 13.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

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 6 Stocks for this week. 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-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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.