2 Nasdaq 100 Stocks to Research Further and 1 Facing Challenges

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.

With rapid innovation comes rapid change, and StockStory is here to help you identify which Nasdaq 100 stocks are still worth your money. That said, here are two Nasdaq 100 stocks that could lead the market and one that may face some trouble.

One Stock to Sell:

Old Dominion Freight Line (ODFL)

Market Cap: $32.25 billion

With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.

Why Does ODFL Give Us Pause?

1. Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Earnings per share have contracted by 5.5% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Waning returns on capital imply its previous profit engines are losing steam

At $153.80 per share, Old Dominion Freight Line trades at 28.3x forward P/E. Check out our free in-depth research report to learn more about why ODFL doesn’t pass our bar.

Two Stocks to Watch:

Netflix (NFLX)

Market Cap: $511.8 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?

1. Global Streaming Paid Memberships are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.8% exceeded its revenue gains over the last three years
3. Free cash flow margin grew by 19.9 percentage points over the last few years, giving the company more chips to play with

Netflix’s stock price of $1,206 implies a valuation ratio of 34.7x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Ross Stores (ROST)

Market Cap: $49.15 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 Could ROST Be a Winner?

1. Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
2. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.5% over the past two years
3. Industry-leading 28.3% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities

Ross Stores is trading at $150.34 per share, or 22.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 Tecnoglass (+1,754% 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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