1 Nasdaq 100 Stock with Impressive Fundamentals and 2 We Avoid

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.

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. Keeping that in mind, here is one Nasdaq 100 stock that has huge potential and two that may struggle.

Two Stocks to Sell:

Comcast (CMCSA)

Market Cap: $110.9 billion

Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.

Why Should You Dump CMCSA?

1. Demand for its offerings was relatively low as its number of domestic broadband customers has underwhelmed
2. Free cash flow margin is forecasted to shrink by 4.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
3. Improving returns on capital suggest management is identifying more profitable investments

Comcast is trading at $30.62 per share, or 8.4x forward P/E.

Warner Bros. Discovery (WBD)

Market Cap: $70.71 billion

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Why Do We Steer Clear of WBD?

1. Annual sales declines of 5% for the past two years show its products and services struggled to connect with the market
2. Free cash flow margin is anticipated to expand by 1.6 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Warner Bros. Discovery’s stock price of $28.31 implies a valuation ratio of 11.5x forward EV-to-EBITDA.

One Stock to Buy:

DexCom (DXCM)

Market Cap: $28.4 billion

Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.

Why Are We Bullish on DXCM?

1. Average organic revenue growth of 14.1% over the past two years demonstrates its ability to expand independently without relying on acquisitions
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin grew by 20.9 percentage points over the last five years, giving the company more chips to play with

At $72.67 per share, DexCom trades at 29.6x forward P/E. Is now the time to initiate a position?

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.

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-micro-cap company Kadant (+351% five-year return).