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2 Nasdaq 100 Stocks on Our Watchlist and 1 We Avoid

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While the Nasdaq 100 (^NDX) is filled with cutting-edge technology and consumer companies, not all are on solid footing. Some are dealing with declining demand, high costs, or regulatory pressures that could limit future upside.

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 have huge potential and one best left off your watchlist.

One Stock to Sell:

Charter (CHTR)

Market Cap: $27.24 billion

Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Are We Out on CHTR?

  1. Sluggish trends in its internet subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Free cash flow margin is expected to increase by 1.8 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
  3. Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate

At $215.71 per share, Charter trades at 5.2x forward P/E. Dive into our free research report to see why there are better opportunities than CHTR.

Two Stocks to Watch:

Amazon (AMZN)

Market Cap: $2.25 trillion

Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.

Why Does AMZN Stand Out?

  1. Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
  2. The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
  3. Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?

Amazon is trading at $209.66 per share, or 27.8x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

ADP (ADP)

Market Cap: $83.53 billion

Processing one out of every six paychecks in the United States, ADP (NASDAQ: ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.

Why Do We Love ADP?

  1. Solid 7.8% annual revenue growth over the last five years indicates its offering’s solve complex business issues
  2. Robust free cash flow margin of 20.6% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
  3. Rising returns on capital show management is finding more attractive investment opportunities

ADP’s stock price of $207.75 implies a valuation ratio of 18.5x forward P/E. Is now the right time to buy? See for yourself in our full 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.

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