2 Nasdaq-100 Stocks That Are No-Brainer Buys in 2026, and 1 to Avoid

• The maturation stock-dominated Nasdaq-100 rallied 20% past twelvemonth and has gained much than 130% implicit the trailing 3 years.

• Two industry-leading maturation stocks cheque each the close boxes to outperform successful 2026.

• Meanwhile, 1 of Wall Street's hottest artificial quality (AI) stocks whitethorn conflict to warrant its premium successful the caller year.

• 10 stocks we similar amended than Palo Alto Networks ›

The 3rd twelvemonth of Wall Street's bull marketplace didn't disappoint. Throughout 2025, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each rallied to respective record-closing highs.

However, it was an particularly beardown twelvemonth for the Nasdaq-100, which comprises 100 of the largest non-financial companies listed connected the Nasdaq banal exchange. When the last doorbell tolled successful 2025, the Nasdaq-100 had precocious by a chill 20%!

But conscionable due to the fact that the Nasdaq-100 has rallied much than 130% implicit the trailing three-year period, it doesn't mean each of its components is worthy buying. The outlooks of the 100 companies that comprise this scale alteration significantly.

As we steam up into 2026, 2 Nasdaq-100 stocks marque for no-brainer buys, portion different highflier is worthy avoiding.

Although respective Nasdaq-100 components stay charismatic successful the caller year, cybersecurity titan Palo Alto Networks (NASDAQ: PANW) stands retired for each the close reasons. While it's not a inexpensive stock, based connected the accepted guardant price-to-earnings (P/E) ratio, it overcomes this imaginable headwind successful a assortment of ways.

On a macro basis, it provides a basal necessity service. While cybersecurity solutions whitethorn person erstwhile been optional, hackers don't instrumentality holidays conscionable due to the fact that Wall Street had a atrocious day. Protecting clouds and endpoint users from cyber threats is simply a 24/7 occupation that's agnostic to the show of the U.S. system oregon Wall Street. In different words, investors tin expect predictable maturation and operating currency travel twelvemonth aft year.

Palo Alto's occurrence this decennary stems from its displacement distant from carnal firewall products and toward its artificial quality (AI)-driven software-as-a-service (SaaS) platforms. On apical of its SaaS platforms being much nimble than on-premises solutions and susceptible of generating substantially higher margins, these next-generation menace detection solutions pb to much accordant income and currency travel done recurring subscriptions. It's the cleanable exemplary for delivering sustained double-digit income and net growth.