In this article, we will discuss the 10 Best Wide Moat Stocks to Buy According to Wall Street Analysts.
On May 22, Reuters reported that UBS Global Wealth Management lifted its forecast for the S&P 500 for year-end 2026 to 7,900 from 7,500. This optimism is backed by strong consumer spending and healthy demand for data center infrastructure. Over the past few weeks, several brokerages raised S&P 500 targets, as Morgan Stanley expects the index to reach 8,000 by 2026 end, thanks to the robust AI-driven investments and optimism around earnings, reported Reuters.
Reuters, while quoting UBS strategists, reported that the firm opines that the bull market drivers are intact. These drivers include healthy economic and profit growth, coupled with the supportive Federal Reserve and the rollout of AI. As per the LSEG data as of May 15, the S&P 500 earnings for Q1 remain on track to see growth of ~29% YoY. Notably, much of this is aided by the AI-associated heavyweights.
Amidst such trends, let us now have a look at the 10 Best Wide Moat Stocks to Buy According to Wall Street Analysts.
Our Methodology
To list the 10 Best Wide Moat Stocks to Buy According to Wall Street Analysts, we sifted through some reputable research platforms and holdings of the VanEck Morningstar Wide Moat ETF. We then narrowed our list to the ones in which analysts see at least ~20% upside. The stocks are ranked in ascending order of their average upside potential. We also mentioned hedge fund sentiment around each stock, as of Q1 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All the data is as of May 25
10 Best Wide Moat Stocks to Buy According to Wall Street Analysts
10. Masco Corporation (NYSE:MAS)
Average Upside Potential: ~20%
Number of Hedge Fund Holders: 42
Masco Corporation (NYSE:MAS) is one of the Best Wide Moat Stocks to Buy According to Wall Street Analysts. On May 14, analyst Susan Maklari of Goldman Sachs maintained a “Buy” rating on the company’s stock, while retaining the price objective of $90.00. The analyst’s rating is backed by the factors that support Masco Corporation (NYSE:MAS)’s capability to ramp up profitable growth over the upcoming years.
The analyst highlighted the company’s strong operational expertise, mainly in plumbing, paint, and wellness. This positions the company to meet 3-year sales, margin, and EPS objectives. Notably, the management’s strategy focuses on using healthy brands, along with product innovation and data-driven initiatives. The expected margin expansion to 18% or higher, backed by operating leverage, structural cost savings, and sustained pricing power, can fuel ~10% EPS CAGR through 2028, expecting only marginal housing recovery.
In a different update, Masco Corporation (NYSE:MAS) highlighted that its industry-leading brands and innovative products, coupled with differentiated capabilities and focused operational execution, position it well to deliver on the strategic objectives.
Masco Corporation (NYSE:MAS) is engaged in offering home improvement and building products.
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