2 Nasdaq 100 Stocks We're Monitoring and 1 We're Ignoring

Spotlight on Nasdaq 100: Leaders and Laggards

The Nasdaq 100 index is home to some of the most dynamic and rapidly expanding companies in the market. However, not every stock in this group is thriving—some are facing headwinds such as slowing momentum, fierce competition, or valuations that may not be justified by their fundamentals.

Choosing investments from the Nasdaq 100 requires more than just selecting well-known brands; it’s about identifying those with the strongest potential. StockStory helps investors navigate these choices. Below, we highlight two promising Nasdaq 100 stocks and one that could be facing significant challenges.

Stock to Consider Selling

Kraft Heinz (KHC)

Market Capitalization: $28.93 billion

Kraft Heinz (NASDAQ:KHC), formed from the 2015 merger of Kraft and Heinz, is a major player in the packaged food sector, offering products ranging from coffee and cheese to processed meats.

Reasons for Caution on KHC:

• Over the past two years, the company has seen a drop in unit sales, relying heavily on price hikes to offset weaker demand.
• Analysts anticipate another decline in sales over the coming year as the company continues to navigate a tough market environment.
• Operating income has decreased in the last year, reflecting both falling sales and difficulties in managing fixed costs.

With shares trading at $24.51 and a forward P/E ratio of 12.1, Kraft Heinz may not offer the best value at this time.

Two Stocks Poised for Growth

Datadog (DDOG)

Market Capitalization: $45.49 billion

Datadog (NASDAQ:DDOG) takes its name from a database the founders once managed. Today, the company delivers a comprehensive software platform that enables organizations to monitor and secure their cloud-based applications, infrastructure, and services.

Why Datadog Stands Out:

• Its software is considered essential by customers, with annual recurring revenue growing at an average rate of 27.6% over the past year.
• Datadog boasts an impressive 80% gross margin, thanks to its advanced features and efficient cost structure.
• The platform’s seamless integration with other tools allows for rapid returns on marketing investments and supports scalable customer acquisition.

Currently, Datadog trades at $128.38 per share, reflecting a forward price-to-sales ratio of 11.2. Is this a good entry point?

Keurig Dr Pepper (KDP)

Market Capitalization: $38.3 billion

Keurig Dr Pepper (NASDAQ:KDP) emerged from the 2018 merger of Keurig Green Mountain and Dr Pepper Snapple, creating a beverage powerhouse with a diverse lineup that includes sodas, coffees, and juices.

What Makes KDP a Contender:

• The company has expanded its reach, with unit sales increasing by an average of 4.4% over the last two years.
• Sales are projected to surge by 57.5% in the next year, outpacing its recent growth trends.
• KDP improved its operating margin by 4.7 percentage points in the past year, showcasing its ability to scale efficiently.

Trading at $28.21 per share and a forward P/E of 12.4, is now the right time to invest?

Discover Even More Top Stock Picks

Bonus: This Week’s Top 6 Stocks
The current market environment is quickly distinguishing high-quality stocks from those with inflated valuations. With AI-driven shifts impacting entire industries, it’s crucial to have more than just a list of reputable companies.

Our AI-powered system identified Palantir before its 1,662% surge, AppLovin ahead of its 753% rally, and Nvidia prior to its 1,178% climb. Each week, it highlights six new stocks that meet these rigorous standards.

Past recommendations have included well-known names like Nvidia (up 1,326% from June 2020 to June 2025) and lesser-known companies such as Comfort Systems, which delivered a 782% five-year return.