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Below are the Nasdaq 100 companies that are within 10% of their respective 52-week lows. The complete list of Nasdaq 100 stocks within 10% can be found here.

Symbol Name Trade P/E EPS Yield P/B % from Low
CTRP Ctrip.com International, Ltd. $25.65 22.00 1.17 0 3.56 2.25%
BMC BMC Software, Inc. $35.59 14.58 2.44 0 4.06 4.30%
NTAP NetApp, Inc. $34.80 21.13 1.65 0 3.45 4.44%
QGEN Qiagen N.V. $13.74 24.98 0.55 0 1.26 5.29%
CHRW C.H. Robinson Worldwide, Inc. $66.13 25.73 2.57 1.70% 8.50 6.15%

Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and rigorous due diligence.

Watch List Summary

On July, 11, 2011, it was announced that SiriusXM (NASDAQ:SIRI) would be added to the Nasdaq 100 Index (article here). Our view, at the time, was that adding SIRI to the Nasdaq 100 wasn’t the best idea. Instead, we provided four stocks from the Nasdaq 50 alternative group which we felt could have been added to the index.

Considering that we’re a month away from the Nasdaq 100 re-ranking, we’d like to see if the stocks that we suggested, from the Nasdaq 50 alternative list, actually did any better than SIRI.

Symbol

company

15-Jul

18-Nov

% Change

SIRI

SiriusXM

2.33

1.79

-23.18%

DISH

Dish Networks

30.77

24.74

-19.60%

SHPGY

Shire Plc

99.67

95.01

-4.68%

NDX

Nasdaq 100

2356.67

2253.95

-4.36%

DISCA

Discovery Comm.

41.6

40.61

-2.38%

ASML

ASML Holdings

34.32

38.07

10.93%

As expected, SiriusXM was the stock that lost the most with a decline of -23.18% in the period from July 15th to November 18th. In this period of time, SIRI’s P/E ratio improved as a result of increased earnings and total revenue along with a share price decline. The trailing price-to-earnings ratio (P/E ratio) contracted from 221 to the current level of 41.

Serial bulls of SiriusXM contended that the P/E ratio would contract based on the expected improvement in earnings. Unfortunately, an improved bottom line did not equate to the expected gains in the stock price. The stock that was closest to SiriusXM, in terms of losses, was Dish Networks, which declined -19.60%. On the other end of the spectrum, ASML Holdings gained +10.93% in the same period of time.

As the deadline for the re-ranking of the Nasdaq 100 approaches, We’re wondering if the Nasdaq 100 selection committee is willing to reconsider SIRI as a member of the Nasdaq 100 index. Although we believe the stock should not be included in the index, we understand that membership is contingent upon volume and market cap considerations. So far, SIRI meets the most basic requirements necessary to remain in the index. However, if the carpet is pulled from under the stock by dropping SIRI from the index, a sizable decline in the price of SIRI is not out of the question.

In addition to the possibility of SIRI being removed from the Nasdaq 100, however remote, are the following companies:

  • Henry Schein (NASDAQ:HSIC)
  • Stericycle (NASDAQ:SRCL)
  • Sigma-Aldrich (NASDAQ:SIAL)
  • Sears Holdings (NASDAQ:SHLD)
  • Qiagen (NASDAQ:QGEN)
  • Ctrip.com (NASDAQ:CTRP)
  • NII Holdings (NASDAQ:NIHD)
  • Warner Chilcott (NASDAQ:WCRX)
  • Vertex Pharma. (NASDAQ:VRTX)
  • BMC Software (NASDAQ:BMC)
  • Life Tech. (NASDAQ:LIFE)
  • Illumina (NASDAQ:ILMN)

It is noted that many of the companies that are on our current Nasdaq 100 watchlist are also potential candidates for being removed from the Nasdaq 100 Index. From prior observation, if for any reason these stocks aren't dropped from the index, they are expected to outperform the Nasdaq index by a sizable margin in the coming year.

Watch List Performance Review

In our ongoing review of the Nasdaq 100 Watch List, we have taken the stocks from our list of November 10, 2010 (found here) and have checked their performance one year later. The companies on that list are provided below with the closing prices from November 10, 2010 to November 9, 2011.

Symbol Name 2010 2011

% Change

WCRX Warner Chilcott plc $20.89 $17.20 -17.66%
APOL Apollo Group, Inc. $36.84 $46.14 25.24%
TEVA Teva Pharma. $50.81 $40.58 -20.13%
ISRG Intuitive Surgical, Inc. $277.96 $429.28 54.44%
AMGN Amgen Inc. $54.93 $57.51 4.70%
Average gain 9.32%
NDX Nasdaq 100 2,187.74 2314.10 5.78%


(Click to enlarge)

The black line drawn in the month of February 2010 indicates the period when three of the five stocks had achieved annualized gains of at least 60% or more. Taken as a whole, the entire portfolio achieved an annualized gain of nearly 40% near the middle of February 2010. In the end, it was Apollo Group and Intuitive Surgical that carried the top five to an average gain of 9.32% over the last year. The top 5 beat out the Nasdaq 100 by 3.54%.

Source: Top 5 Nasdaq 100 Stocks To Consider Now