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. Keeping that in mind, here are three Nasdaq 100 stocks to steer clear of and a few alternatives to consider.
PepsiCo (PEP)
Market Cap: $201.3 billion
With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.
Why Does PEP Give Us Pause?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Projected sales growth of 3.8% for the next 12 months suggests sluggish demand
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 2.4 percentage points
At $145.96 per share, PepsiCo trades at 17.1x forward P/E. Read our free research report to see why you should think twice about including PEP in your portfolio.
Charter (CHTR)
Market Cap: $25.76 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 Should You Dump CHTR?
- Sluggish trends in its internet subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
- Rising returns on capital show management is making relatively better investments
Charter’s stock price of $201.74 implies a valuation ratio of 4.8x forward P/E. Dive into our free research report to see why there are better opportunities than CHTR.
PACCAR (PCAR)
Market Cap: $53.81 billion
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Are We Wary of PCAR?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Forecasted revenue decline of 5.2% for the upcoming 12 months implies demand will fall even further
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
PACCAR is trading at $105.10 per share, or 20.5x forward P/E. Read our free research report to see why you should think twice about including PCAR in your portfolio.
High-Quality Stocks for All Market Conditions
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The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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).
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