Nasdaq 100 Stocks to Watch: AMD Shines While PANW and WMT Struggle

The Nasdaq 100 index includes some of the biggest successes in tech and growth investing. However, not all stocks in this group are performing well.

Two companies that may be worth avoiding are Palo Alto Networks (PANW) and Walmart (WMT).

Palo Alto Networks has a gross margin of 72%, which is below its competitors, leaving less money for investment. Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment.

The operating margin fell by 1.5 percentage points over the last year, indicating decreased efficiency.

Walmart has faced growth challenges with its annual revenue increases of 5.3% over the last three years falling short of other consumer retail companies. Its low gross margin of 24.9% reflects commoditized inventory and high competition.

In contrast, Advanced Micro Devices (AMD) is a standout stock in the Nasdaq 100 index.

Market share has increased this cycle with its 33.2% annual revenue growth over the last two years being exceptional.