The Nasdaq 100 (^NDX) is home to some of the biggest success stories in tech and growth investing. However, certain stocks in the index face challenges like profitability concerns, rising costs, or shifts in market trends.
Even among high-growth companies, some are struggling, which is why we built StockStory - to help you separate winners from losers. That said, here is one Nasdaq 100 stock that could lead the market and two that may struggle.
Two Stocks to Sell:
Old Dominion Freight Line (ODFL)
Market Cap: $44.12 billion
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Why Are We Wary of ODFL?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Earnings per share have contracted by 5.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Eroding returns on capital suggest its historical profit centers are aging
Old Dominion Freight Line is trading at $212 per share, or 34.1x forward P/E. If you’re considering ODFL for your portfolio, see our FREE research report to learn more.
CSX (CSX)
Market Cap: $93.36 billion
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ:CSX) is a transportation company specializing in freight rail services.
Why Do We Pass on CSX?
- Weak unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Flat earnings per share over the last two years lagged its peers
- Free cash flow margin shrank by 6.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $50.65 per share, CSX trades at 23.5x forward P/E. Dive into our free research report to see why there are better opportunities than CSX.
One Stock to Buy:
Broadcom (AVGO)
Market Cap: $1.85 trillion
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Will AVGO Outperform?
- Impressive 33.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Superior product capabilities and pricing power result in a best-in-class gross margin of 76.6%
- Strong free cash flow margin of 41.9% enables it to reinvest or return capital consistently
Broadcom’s stock price of $387.45 implies a valuation ratio of 24.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.