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. That said, here are two Nasdaq 100 stocks that have huge potential and one that may face some trouble.
One Stock to Sell:
Paychex (PAYX)
Market Cap: $40.99 billion
Once known as the go-to service for small business payroll needs, Paychex (NASDAQ: PAYX) provides payroll processing, HR services, employee benefits administration, and insurance solutions to small and medium-sized businesses.
Why Do We Think Twice About PAYX?
- Muted 8.7% annual revenue growth over the last five years shows its demand lagged behind its software peers
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 4.2 percentage points
- Free cash flow margin is forecasted to shrink by 3.9 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
Paychex is trading at $114.06 per share, or 6.2x forward price-to-sales. If you’re considering PAYX for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
CrowdStrike (CRWD)
Market Cap: $121.3 billion
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Are We Bullish on CRWD?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 24% over the last year
- Estimated revenue growth of 22.1% for the next 12 months implies its momentum over the last two years will continue
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
At $480.95 per share, CrowdStrike trades at 21.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Cintas (CTAS)
Market Cap: $76.43 billion
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Do We Love CTAS?
- Annual revenue growth of 9.3% over the past five years was outstanding, reflecting market share gains this cycle
- Share buybacks catapulted its annual earnings per share growth to 15.6%, which outperformed its revenue gains over the last five years
- Robust free cash flow margin of 16.2% gives it many options for capital deployment
Cintas’s stock price of $191.08 implies a valuation ratio of 37.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
