The biggest names in tech, e-commerce, and digital transformation are in the Nasdaq 100 (^NDX), but only a few are leading the pack. Some companies in this index are proving their resilience and expanding their competitive advantages.
Even among industry leaders, some companies shine bright, and we built StockStory to help you find them. That said, here are three Nasdaq 100 stocks that have huge potential.
Market Cap: $179.1 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ:BKNG) is the world’s largest online travel agency.
Why Does BKNG Stand Out?
Room Nights Booked have grown by 9.5% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
BKNG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Booking is trading at $5,526 per share, or 18.4x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Market Cap: $2.99 trillion
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.
Why Are We Bullish on GOOGL?
Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.
Alphabet’s stock price of $247.69 implies a valuation ratio of 25.8x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.
Market Cap: $54.8 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Should You Buy AXON?
Unit sales averaged 28.8% growth over the past two years and imply healthy demand for its products
Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 46.5% outpaced its revenue gains
Historical investments are beginning to pay off as its returns on capital are growing