2 Nasdaq 100 Stocks Worth Your Attention and 1 We Question

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 are two Nasdaq 100 stocks driving the future of tech and one best left off your watchlist.

One Stock to Sell:

Gilead Sciences (GILD)

Market Cap: $183.2 billion

From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ:GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.

Why Are We Cautious About GILD?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.6% for the last five years
2. Free cash flow margin dropped by 7.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Waning returns on capital imply its previous profit engines are losing steam

Gilead Sciences is trading at $147.42 per share, or 17.2x forward P/E. If you’re considering GILD for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Netflix (NFLX)

Market Cap: $329.5 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 Are We Backing NFLX?

1. Global Streaming Paid Memberships have increased by an average of 15.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Healthy EBITDA margin of 29.8% shows it’s a well-run company with efficient processes, and its profits increased over the last few years as it scaled
3. Free cash flow margin increased by 15.8 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Netflix’s stock price of $78.41 implies a valuation ratio of 19.7x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Vertex Pharmaceuticals (VRTX)

Market Cap: $123.8 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 Does VRTX Catch Our Eye?

1. 14.1% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $488.25 per share, Vertex Pharmaceuticals trades at 25.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. 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 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.