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.
9. Amazon.com, Inc. (NASDAQ:AMZN)
Average Upside Potential: ~20.1%
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Wide Moat Stocks to Buy According to Wall Street Analysts. On May 21, Bank of America analyst Justin Post reiterated a “Buy” rating on the company’s stock with a price objective of $310. As per the analyst, the company’s cloud business continues to demonstrate healthier momentum, thanks to AI demand, stronger profitability, and an increasing backlog.
Furthermore, the analyst highlighted Amazon.com, Inc. (NASDAQ:AMZN)’s reacceleration in the retail segment and the upcoming June Prime Day. The company has been improving across numerous areas at once and is not depending on one part of its business, added the analyst. Post also noted the company’s use of AI in shopping, which includes Alexa for Shopping and Rufus, which can result in a better shopping experience and help fuel more sales over time.
Therefore, the analyst believes Amazon.com, Inc. (NASDAQ:AMZN) is a stronger AI and cloud story after the results. Overall, the AWS growth seems to be improving, while AI demand continues to accelerate, and its retail tools are also getting better.
Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
8. Fair Isaac Corporation (NYSE:FICO)
Average Upside Potential: ~22.3%
Number of Hedge Fund Holders: 60
Fair Isaac Corporation (NYSE:FICO) is one of the Best Wide Moat Stocks to Buy According to Wall Street Analysts. On May 21, BofA reduced its price objective on the company’s stock to $1,400 from $1,550 and kept a “Buy” rating on the shares. Notably, the firm adjusted its price targets in the overall business and information services group post the earnings.
In a different update, Fair Isaac Corporation (NYSE:FICO)’s net income for Q2 2026 amounted to $264.5 million, or $11.14 per share, compared to $162.6 million, or $6.59 per share, in Q2 2025. Notably, Scores revenues amounted to $475.0 million as compared to $297.0 million in Q2 2025, up by 60%, with B2B revenue rising 72%, mainly due to a higher mortgage origination scores unit price and higher volume of mortgage originations.
Talking about the second segment, software revenues rose by 7% YoY with $216.7 million in Q2 2026 as compared to $201.7 million in Q2 2025. Fair Isaac Corporation (NYSE:FICO) raised its FY 2026 guidance, with revenues now expected to be $2.45 billion as compared to the previous guidance of $2.35 billion.
Fair Isaac Corporation (NYSE:FICO) is engaged in offering analytics software.
7. Motorola Solutions, Inc. (NYSE:MSI)
Average Upside Potential: ~23.6%
Number of Hedge Fund Holders: 61
Motorola Solutions, Inc. (NYSE:MSI) is one of the Best Wide Moat Stocks to Buy According to Wall Street Analysts. On May 14, the company announced its $100 million plan to scale and diversify the manufacturing as well as supply chain operations of Silvus Technologies, which is a global leader in advanced tactical networking and electromagnetic spectrum operations (EMSO).
Furthermore, it was highlighted that, while expansion is expected to result in 200 new roles, the capacity increase could allow Silvus to scale production of its mission-critical StreamCaster MANET radios. With the landscape for defense technology evolving, Motorola Solutions, Inc. (NYSE:MSI)’s Executive Vice President and Chief Operating Officer opines that the need for resilient, high-bandwidth communications is important.
The investment helps in making sure that Silvus can meet the growing demand for the industry-leading mesh networking and electromagnetic spectrum operations solutions. The investment is backed by the Utah Governor’s Office of Economic Development and the Utah Inland Port Authority.
Motorola Solutions, Inc. (NYSE:MSI) is engaged in offering public safety, government, defense, and enterprise security solutions.
6. TransUnion (NYSE:TRU)
Average Upside Potential: ~26.5%
Number of Hedge Fund Holders: 35
TransUnion (NYSE:TRU) is one of the Best Wide Moat Stocks to Buy According to Wall Street Analysts. On May 19, BofA analyst Curtis Nagle reduced the firm’s price objective on the company’s stock to $80 from $83 and kept a “Neutral” rating on the shares. Notably, the firm adjusted its price targets in the broader business and information services group post the Q1 earnings.
Net income attributable to TransUnion (NYSE:TRU) came in at $397 million for Q1 2026 compared to $148 million for Q1 2025. This was mainly because of the $225 million gain on the previously held equity interest in Trans Union de México, S.A., S.I.C. The U.S. Markets revenue rose by 14%, mainly due to the U.S. Financial Services and Insurance.
Over the course of the year, TransUnion (NYSE:TRU) anticipates healthy FCF to enable debt prepayments as well as greater return of capital to shareholders. Also, the company raised its 2026 guidance mainly due to the completed acquisition of majority ownership in Trans Union de Mexico. TransUnion (NYSE:TRU) expects revenue in the range of $5,100 million – $5,135 million for FY 2026, while net income is expected to be $790 million – $804 million.
TransUnion (NYSE:TRU) operates as the global consumer credit reporting agency, which is engaged in providing risk and information solutions.
While we acknowledge the potential of TRU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRU and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Wide Moat Stocks to Buy According to Wall Street Analysts
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center