The Nasdaq 100 is a stock market index that includes 100 of the largest, most actively traded, non-financial companies listed on the Nasdaq Composite exchange. Think of the Nasdaq 100 as representing the biggest stocks in the larger composite index that is comprised of more than 2,500 securities. As one might expect, the Nasdaq 100 is comprised largely, though not exclusively, of technology stocks. And, as such, it is a strong performer. In the past 12 months, the Nasdaq 100 has gained 53%, including a 10% gain so far in 2024. That puts the index ahead of the larger Nasdaq Composite index that has risen 45% in the last year. For investors, the Nasdaq 100 is a great place to find strong equities. Here are seven Nasdaq 100 stocks to fuel your March gains.
Nasdaq 100 Stocks: Apple (AAPL)
Shares of Apple (NASDAQ:AAPL) haven’t been setting the world on fire lately. The stock is down 7% on the year, while the Nasdaq 100 has gained 10% since the start of January. Concerns are growing about slowing sales of the company’s electronic devices, especially its signature iPhone. Recent reports that sales of the iPhone in China declined 24% during the first six weeks of the year have dragged AAPL stock down.
Despite the problems, it is unlikely that AAPL stock will be down for long. If anything, investors should treat the current slump as a buying opportunity. Also keep in mind that Apple is diversifying its business and developing more services such as streaming and banking, and it just launched an entirely new augmented reality headset called the “Vision Pro.” Plus, there are rumors Apple will make a major AI announcement soon.
Applied Materials (AMAT)
Applied Materials (NASDAQ:AMAT) is having a very good year. The company’s stock is up 32% in 2024, and has gained 75% in the last 12 months. Applied Materials makes the circuits, silicon and other materials that are essential to the manufacture of microchips. People refer to the company as the backbone of the global chip sector. Some of Applied Materials’ earliest products are on display at the Smithsonian.
As one might imagine, AMAT stock is being pushed higher by soaring demand for its products amid the current AI revolution and need to produce microchips and semiconductors on a mass scale. In mid-February, the company reported fourth quarter 2023 earnings that crushed Wall Street expectations, sending its share price up 13%. Applied Materials also gave guidance that exceeded expectations, crediting AI demand.
Nasdaq 100 Stocks: CrowdStrike Holdings (CRWD)
CrowdStrike Holdings (NASDAQ:CRWD) has distinguished itself as a best-of-breed cybersecurity stock. The company just delivered Q4 2023 earnings that were so good they vaulted CRWD stock up more than 20% in a single trading session. CrowdStrike reported earnings per share (EPS) of 95 cents compared to 82 cents that was the consensus expectation on Wall Street. Revenue totaled $845 million versus $839 million forecasted.
The company reported that its full-year 2023 revenue rose 36% from 2022 levels to reach $3 billion. CrowdStrike also announced it is acquiring privately held Flow Security for an undisclosed price in a cash-and-stock deal that’s scheduled to close in the current quarter. The strong financial results and growth through acquisitions has CRWD stock up 34% this year, and up 171% over the last 12 months.
Costco Wholesale (COST)
Not every stock in the Nasdaq 100 is of a technology company. One of the standout non-tech stocks is Costco Wholesale (NASDAQ:COST). The big box grocery retailer just issued its latest financial results and they were typically strong. While the stock initially dropped after the print, that was mostly because the company once again put off raising its membership fees, something Wall Street analysts have been grumbling about for years.
On the day of this writing, COST stock is up 3%, bringing its year-to-date (YTD) increase to 13%. The share price has increased 56% over the last 12 months. This as Costco reported year-over-year sales growth of 6% in Q4 2023 and an annualized gain of 18% in its e-commerce sales. The warehouse club is under new management, with both the CEO and CFO retiring since the start of the year. However, Costco has ensured a strong succession plan.
Nasdaq 100 Stocks: Broadcom (AVGO)
Another Nasdaq 100 stock to ride the chip rally is Broadcom (NASDAQ:AVGO). The company’s share price is also rallying along with the entire microchip sector and on swelling AI demand. In the last 12 months, AVGO stock has more than doubled (up 107%), including a 17% gain this year. The Silicon Valley-based company just reported earnings of $10.99 per share, beating Wall Street estimates of $10.40 a share.
Revenue in the quarter totaled $11.96 billion, which was also above estimates of $11.80 billion. Wall Street wasn’t too impressed with Broadcom’s full-year revenue guidance of $50 billion, which is inline with forecasts. But the company is known for providing conservative guidance. Beyond AI, Broadcom’s semiconductors and chips are used in sectors such as networking, broadband, server storage, wireless, and industrial.
Diamondback Energy (FANG)
Another Nasdaq 100 stock that is not in the technology sphere is Diamondback Energy (NASDAQ:FANG). Not only is Diamondback Energy the only oil and gas company listed on the Nasdaq 100, but it is one of the few U.S. energy stocks that has continued to perform well as the price of crude oil has retreated over the past year. In 2024, FANG stock is up 18%. That brings its 12-month gain to 40% and its five-year increase to 80%.
Currently, Diamondback Energy is in the process of acquiring Endeavor Energy Partners in a cash-and-stock deal worth $26 billion. Endeavor is the largest privately held oil and gas producer in the Permian Basin of Texas. Buying Endeavour Energy will give Diamondback an additional 350,000 acres in the Midland, Texas area of the Permian Basin, which straddles West Texas and eastern New Mexico.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) continues to lead in the global streaming of movies and TV shows, and seems to be the only company generating profits from the endeavour. Despite heavy market penetration, Netflix continues to add paying subscribers at a fast clip. The company added 13.1 million net new subscribers in the final quarter of 2023. Wall Street was only expecting eight million to nine million net new additions.
At the same time, Netflix has taken steps to get its financial house in order as its business matures, adding paid advertisements, cracking down on password sharing, and venturing into live sports. The company just announced that it will live stream its first ever boxing match, a bout between Mike Tyson and Jake Paul that has been set for July 20. These efforts have NFLX stock up 31% YTD and up 109% over the last 12 months.
On the date of publication, Joel Baglole held long positions in AAPL and AMAT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
