The 3 Best Nasdaq-100 Stocks in 2025: Wall Street Says Buy One and Sell the Others

Group 1: Nasdaq-100 Overview - The Nasdaq-100 index includes 100 large non-financial companies listed on the Nasdaq Stock Exchange, with Palantir Technologies, Zscaler, and MercadoLibre being the top performers year to date [1] - Wall Street forecasts indicate a downside for Palantir and Zscaler, while MercadoLibre is recommended as a buy [1] Group 2: Palantir Technologies - Palantir's stock has increased by 69% year to date, but the median target price of $100 per share suggests a 21% downside from the current price of $127 [6] - The company reported a 39% increase in revenue to $884 million for the first quarter, marking the seventh consecutive acceleration, and a 62% increase in non-GAAP net income to $0.13 per diluted share [3] - IDC recognized Palantir as a leader in decision intelligence platforms, and it is noted as the most expensive software stock based on its forward price-to-sales ratio [2][4] - Analysts suggest avoiding Palantir due to its high valuation, even if growth rates remain strong [5] Group 3: Zscaler - Zscaler's stock is up 68% year to date, with a median target price of $300 per share implying a 1% downside from the current price of $303 [6] - The company reported a 23% increase in revenue to $678 million for the third quarter of fiscal 2025, with non-GAAP net income rising 18% to $0.84 per diluted share [9] - Zscaler is recognized as a leader in security service edge platforms, with the SSE market expected to grow at 27% annually through 2030 [10] - Despite strong growth, Wall Street anticipates adjusted earnings growth of only 9% annually through fiscal 2026, making the current valuation appear expensive [11] Group 4: MercadoLibre - MercadoLibre's stock has increased by 46% year to date, with a median target price of $2,875 per share indicating a 15% upside from the current price of $2,485 [6] - The company dominates the Latin American e-commerce market, accounting for 28.5% of regional retail e-commerce sales, projected to reach 30% by 2026 [12] - MercadoLibre reported a 37% increase in revenue to $5.9 billion in the first quarter, driven by strong growth in its fintech segment, with GAAP net income rising 44% to $9.74 per diluted share [14] - Wall Street expects MercadoLibre's earnings to grow at 36% annually through 2026, making its current valuation of 61 times earnings reasonable [15]