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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.
Adobe (ADBE)
Market Cap: $177.8 billion
One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ:ADBE) is a leading provider of software as service in the digital design and document management space.
Why Are We Positive On ADBE?
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Prominent and differentiated software leads to a best-in-class gross margin of 89.2%
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Healthy operating margin of 36.3% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last year
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Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $413.16 per share, Adobe trades at 7.6x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Booking (BKNG)
Market Cap: $173 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ:BKNG) is the world’s largest online travel agency.
Why Do We Love BKNG?
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Room Nights Booked are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
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Share repurchases have amplified shareholder returns as its annual earnings per share growth of 51.8% exceeded its revenue gains over the last three years
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Robust free cash flow margin of 33.1% gives it many options for capital deployment
Booking’s stock price of $5,282 implies a valuation ratio of 19.1x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Airbnb (ABNB)
Market Cap: $85.18 billion
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Should You Buy ABNB?
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Nights and Experiences Booked have increased by an average of 10.4% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
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Earnings per share grew by 49.4% annually over the last three years and trumped its peers
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Strong free cash flow margin of 39.7% enables it to reinvest or return capital consistently
Airbnb is trading at $135.50 per share, or 20.5x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.