2 Nasdaq 100 Stocks on Our Watchlist and 1 We Brush Off

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 are two Nasdaq 100 stocks that could lead the market and one that may face some trouble.

One Stock to Sell:

Kraft Heinz (KHC)

Market Cap: $28.93 billion

The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.

Why Are We Out on KHC?

1. Declining unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs

Kraft Heinz’s stock price of $24.51 implies a valuation ratio of 12.1x forward P/E. Check out our free in-depth research report to learn more about why KHC doesn’t pass our bar.

Two Stocks to Watch:

Datadog (DDOG)

Market Cap: $45.49 billion

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.

Why Will DDOG Outperform?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 27.6% growth over the last year
2. Superior software functionality and low servicing costs result in a top-tier gross margin of 80%
3. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale

Datadog is trading at $128.38 per share, or 11.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Keurig Dr Pepper (KDP)

Market Cap: $38.3 billion

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Why Could KDP Be a Winner?

1. Products are reaching more households as its unit sales averaged 4.4% growth over the past two years
2. Exciting sales outlook for the upcoming 12 months calls for 57.5% growth, an acceleration from its three-year trend
3. Operating margin improvement of 4.7 percentage points over the last year demonstrates its ability to scale efficiently

At $28.21 per share, Keurig Dr Pepper trades at 12.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.