With the strong performance of the NASDAQ 100 in recent years, valuation has become an issue for the index. But that doesn’t mean there isn’t value in some of the names within it.
Using Validea’s factor screening system, which incorporates 22 different investment strategies modeled after legendary investors like Warren Buffett and Peter Lynch, as well as proven academic research – Validea has identified several NASDAQ 100 companies that still demonstrate strong fundamental value.
Here are the top 10 most fundamentally sound stocks within the index using our guru models as of January 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | P/E Ratio | Price/Sales | Relative Strength | Price/Book | Price/Cash Flow | Dividend Yield | Long-Term EPS Growth |
|---|---|---|---|---|---|---|---|---|---|---|
| GOOGL | Alphabet Inc | $192.04 | $2,357,015 | 25.2 | 6.9 | 81 | 7.5 | 21.7 | 0.2% | 29.7% |
| AMAT | Applied Materials Inc | $171.65 | $139,669 | 20.0 | 5.1 | 68 | 7.4 | 18.5 | 0.8% | 20.4% |
| MSFT | Microsoft Corp | $423.35 | $3,147,557 | 35.0 | 12.4 | 68 | 10.9 | 27.1 | 0.9% | 18.7% |
| FTNT | Fortinet Inc | $97.47 | $74,706 | 49.2 | 13.1 | 87 | 82.2 | 44.4 | 0.0% | 43.3% |
| TSCO | Tractor Supply Co | $53.87 | $28,777 | 26.2 | 2.0 | 56 | 12.6 | 50.6 | 1.5% | 20.9% |
| LRCX | Lam Research Corp | $77.52 | $99,744 | 25.1 | 6.4 | 83 | 11.8 | 49.1 | 1.2% | 36.7% |
| NVR | NVR Inc | $7,897.00 | $24,727 | 16.5 | 2.4 | 66 | 5.8 | 38.7 | 0.0% | 720.9% |
| KNSL | Kinsale Capital Group Inc | $420.69 | $9,975 | 24.4 | 6.8 | 69 | 7.0 | 34.7 | 0.2% | 10.3% |
| LPLA | LPL Financial Holdings Inc | $335.64 | $25,133 | 25.2 | 2.2 | 19 | 9.1 | 41.4 | 0.5% | 107.7% |
| WSM | Williams-Sonoma Inc | $195.37 | $23,721 | 22.8 | 3.2 | 92 | 12.5 | 58.9 | 2.1% | 46.1% |
Further Research
