A wide-moat stock is a company stock that maintains market leadership through a premium product, brand value, or corporate strategy. The company’s dominance in the market relative to its competitors makes it a solid investment idea. Hence, it is known as a wide-moat stock because just as a moat would safeguard forts in the medieval era, the company’s robust market standing, product value, and strong reputation protect its stock from plummeting during different market cycles.
A wide-moat stock can sustain its market power by patenting and licensing its products, which makes duplication and substitutes harder to come by. This would also add barriers to entry within the industry and keep competition in check, which creates long-term profits for wide-moat stocks.
An economic moat is not just a momentary market edge; it is rather a sustainable competitive advantage that enables a company to stay ahead of industry rivals for a long time. Warren Buffett shed some light on moats, saying:
“We’re trying to find a business with a wide and long-lasting moat around it, surrounding and protecting a terrific economic castle—with an honest lord in charge of the castle … For one reason or another, it can be because it’s the low-cost producer in some area. It can be because it has a natural franchise [or] because of its service capabilities, its position in the consumer’s mind, [or] because of a technological advantage. For any kind of reason at all, it has this moat around it.”
With that in mind, let’s take a look at the 10 best wide moat stocks to buy that are also on Wall Street’s radar.
Pixabay/Public Domain
Our Methodology
We analyzed the VanEck Morningstar Wide Moat ETF and identified 10 stocks that received coverage from Wall Street analysts and mainstream media outlets between June 7 and 9. These wide moat stocks were also favored by top hedge funds in the first quarter of 2025, as per Insider Monkey’s Q1 2025 database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Wide Moat Stocks To Buy Now
10. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 37
Brown-Forman Corporation (NYSE:BF-B) is one of the best wide moat stocks to buy now. On June 9, UBS analyst Peter Grom maintained a Neutral rating on Brown-Forman and slashed the price target from $38 to $30. The price target was amended after the company disclosed challenges at the end of FY2025, with future forecasts suggesting that these issues will persist.
Brown-Forman Corporation (NYSE:BF-B)’s Q4 results and outlook for the next year fell short of Street estimates. The company’s financial outcomes triggered investor concerns about the present hindrances and whether they will continue in the future or remain a temporary setback.
The analyst commented that before the Q4 results, investors believed that the biggest headwinds had already been priced into the stock, and the possible cost cutting might result in more profits. However, the actual earnings were not aligned with this optimism, leading people to rethink the company’s long-term growth potential.
Despite the share price drop, Brown-Forman Corporation (NYSE:BF-B)’s valuation is promising, trading at roughly 17x the earnings, which is less than its 5-year average of about 33x. While the valuation is attractive, the analyst noted that the stock will potentially remain within a specific range until more compelling data emerges about future revenue growth.
Brown-Forman Corporation (NYSE:BF-B) is a leading American producer of premium alcoholic beverages, known for iconic brands like Jack Daniel’s, Woodford Reserve, and Herradura.
9. International Flavors & Fragrances Inc. (NYSE:IFF)
Number of Hedge Fund Holders: 47
International Flavors & Fragrances Inc. (NYSE:IFF) is one of the best wide moat stocks to buy now. On June 9, UBS analyst Joshua Spector reiterated a Neutral rating on IFF, with a consistent target price of $83. The analyst’s evaluation refers to the company’s latest Pharma divestment, which has successfully lowered its net debt-to-EBITDA ratio from about 4x last year to an estimated 2.8x this year.
The analyst noted that the main challenge for International Flavors & Fragrances Inc. (NYSE:IFF) is now growth rather than leverage. Specter also observed the company’s performance relative to industry peers, in terms of consumer spending and the effect of GLP-1s.
Spector came to the conclusion that the company’s present portfolio lacks the growth drivers to outperform peer performance for now, noting the Food Ingredients division is dragging margins and growth. Therefore, the analyst believes IFF deserves a lower valuation compared to peers, given its forecasted reduced growth.
Although IFF has experienced improved growth lately in its Taste and Scent segments compared to industry rivals, its Health/Bio segment, which includes enzymes and probiotics, has not kept up. The analyst is staying neutral for now, needing clearer signs of how IFF stacks up and how the market will grow.
International Flavors & Fragrances Inc. (NYSE:IFF) is a global player in the development and marketing of innovative ingredients across food, beverage, health, scent, and pharma sectors.
8. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 93
Merck & Co., Inc. (NYSE:MRK) is one of the best wide moat stocks to buy now. On June 9, Merck’s preventative antibody shot received authorization from the U.S. Food and Drug Administration (FDA). This shot shields infants up to the age of one from the respiratory syncytial virus during their first RSV period. RSV refers to a common respiratory virus that leads to seasonal infections like the flu, yet for infants and older people, it is a primary cause of pneumonia and death.
There has been limited availability of Sanofi’s and AstraZeneca’s preventive shots for RSV for the previously mentioned age group so far. Merck’s antibody, called clesrovimab and sold under the name Enflonsia, can be taken as a single dose to protect healthy pre-term, full-term, and at-risk infants from mild to aggressive RSV.
Merck & Co., Inc. (NYSE:MRK) projects Enflonsia shipments to turn up on schedule for the 2025-2026 RSV season. The CDC’s Advisory Committee on Immunization Practices will likely gather later in June to assess and recommend the use of Enflonsia for infants.
Merck is a global healthcare company that develops treatments for cancer, infectious diseases, and chronic conditions, and also provides vaccines and health solutions for both humans and animals.
7. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 96
The Boeing Company (NYSE:BA) is one of the best wide moat stocks to buy now. On June 9, RBC Capital Markets maintained an Outperform rating on Boeing and lifted the price target from $200 to $230. RBC analyst Ken Herbert noted positive solid market sentiment ahead of an upcoming airshow and a solid estimate for future free cash flow (FCF) as the primary contributors to Boeing’s stock performance.
The company management as of late issued optimistic statements about the 737 MAX aircraft, and the projected widebody deliveries for May seemed robust. Moreover, Boeing’s forecasted free cash flow for 2027-2028 is expected to fall between $10-$12 billion, which can potentially improve investor sentiment.
Despite the favorable outlook, the analyst pointed out that the capacity of the supply chain to maintain larger production rates poses a huge risk for The Boeing Company (NYSE:BA). However, the projected shift to a production rate of 42 units monthly for the 737 MAX is considered viable given the presently towering inventory levels.
The updated price target at $230 is calculated by applying 21.1x multiple to RBC Capital Markets’ 2027 FCF projection for Boeing of approximately $8.5 billion. This revision demonstrates RBC’s confidence in Boeing’s financial stability and its strategic place in the aerospace market. In the future, investors will closely monitor the company’s stock performance and growth prospects as it navigates the challenges related to aircraft manufacturing and supply chain management.
The Boeing Company (NYSE:BA) is an aerospace and defense giant that designs, manufactures, and supports a diverse portfolio including commercial jets, military aircraft, satellites, and advanced space systems.
6. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 97
Oracle Corporation (NYSE:ORCL) is one of the best wide moat stocks to buy now. On June 9, Cantor Fitzgerald analyst Thomas Blakey reiterated an Overweight rating on ORCL and assigned a price target of $175. Blakey pointed out Oracle successfully shifting workloads to the Oracle Cloud Infrastructure (OCI), noting that this development carved a leading position for the company in AI infrastructure.
According to the analyst, Oracle, along with Microsoft, seems to be capturing a larger market segment, driven by its AI-based infrastructure, including specialized hardware, Remote Direct Memory Access (RDMA), extensive GPU access, and built-in security measures. Blakey also added that Oracle’s business as a whole saw an improvement during the fourth fiscal quarter of 2025, rebounding from a softer Q3 that was hindered by macroeconomic disturbances.
The analyst mentioned that Oracle Corporation (NYSE:ORCL)’s Stargate project, which is not yet operational, is not expected to contribute to the fourth fiscal quarter of 2025 results, and might not be a contributor to fiscal year 2026 numbers either. Investors and market experts are likely to monitor the AI investments and the Stargate deals in terms of margins, in addition to the development of the Abilene data center, as Oracle works to increase its market share.
Oracle Corporation (NYSE:ORCL) is a Texas-based provider of cloud software, infrastructure technologies, databases, and hardware solutions for businesses, governments, and educational institutions around the world.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 99
Pfizer Inc. (NYSE:PFE) is one of the best wide moat stocks to buy now. On June 9, Pfizer, along with other drug manufacturers, had a meeting with the Trump administration to talk about reducing US drug prices. However, Pfizer’s chief executive, Albert Bourl,a mentioned that no commitments have been agreed upon.
President Trump ordered drugmakers last month to slash the prices of their medicines so they match what other countries are paying. As per this executive order, the government was to select “Most Favored Nation” target prices in 30 days. The Department of Health and Human Services called for drugmakers in the United States to revise their prices to align with the lowest price paid by similar high-income countries.
At the Goldman Sachs Global Healthcare Conference, Albert Bourla commented:
“I don’t know what we will hear in 30 days,”
Reiterating Pfizer’s focus on high-level ideas, Bourla added:
“The administration already started series of meetings with companies. … The meetings were cordial, but they were not digging into the substance,”
For now, it is unclear how the US government will bring down drug prices, and this policy will be hard to execute, as per analysts and legal professionals. A spokesperson commented that Health Secretary Robert F. Kennedy, Jr. would launch a system where American patients can directly buy their medicine from drug makers that sell to Americans at a “Most-Favored-Nation” price.
Pfizer’s Bourla was hopeful that, due to American pressure on European nations to pay higher prices, the overall drug prices could rise. He stated that if America starts controlling prices, Pfizer Inc. (NYSE:PFE) could withhold drugs for government reimbursement in some countries if they do not increase prices there. He clarified:
“I don’t think we will remove our products from the markets there – we will just remove them from reimbursement. We will leave them in open market.”
Pfizer manufactures and sells biopharmaceutical products worldwide, catering to heart health, infectious diseases, migraines, immune disorders, and cancer.
4. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 102
The Charles Schwab Corporation (NYSE:SCHW) is one of the best wide moat stocks to buy now. On June 9, Redburn-Atlantic upgraded SCHW to Neutral from Sell, and lifted the price target from $82 from $65. This revision indicates a shift in the firm’s evaluation of Schwab’s place in the American retail wealth management industry. The stock has posted a promising 20% return year-to-date, and presently it trades close to its 52-week high of $89.84.
The analysts observed that Charles Schwab is a major player in the two fastest-growing divisions of the American retail wealth management sector. They pointed towards an optimistic outlook for SCHW as pressure from cash sweep issues starts to alleviate, which has enabled the company to lower high-cost financing. The $160 billion market cap company also demonstrates financial stability, given its 37 consecutive years of dividend payouts.
Despite the rating upgrade, the analysts remain cautious about the sustainability of the cash sorting recovery, noting that the market may not completely account for possible risks. Redburn’s EPS estimates for The Charles Schwab Corporation (NYSE:SCHW) are roughly 5% less than the market consensus for 2025 to 2027. Moreover, they added that potential changes to Schwab’s business model, such as lowering duration and shrinking the bank, could affect the company’s earnings capacity.
The analysts also observed that the present challenges faced by Schwab are less pressing than they were earlier. Redburn added that the ability to pay down high-cost debt and reinvest in the securities portfolio at greater yields offers a margin of safety to Schwab’s valuation.
The Charles Schwab Corporation (NYSE:SCHW) is an American financial services company providing wealth management, brokerage, banking, asset management, custody, and advisory services.
3. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 111
Adobe Inc. (NASDAQ:ADBE) is one of the best wide moat stocks to buy now. On June 9, UBS analyst Karl Keirstead reiterated a Neutral rating on ADBE and lifted the target price to $430 from $380. The analyst is looking forward to Adobe’s Q2 earnings report, which is set to be published on June 12, 2025.
Keirstead contemplated on the latest interactions with Adobe partners and assessed the impact of pricing revisions at the company. Regardless of a small drop in April activity, the macroeconomic effects were considered modest. The analyst added that Adobe’s recent price increase could improve the company’s chances of attaining its 11% annual recurring revenue (ARR) growth goal for FY2025.
The analysis by Keirstead suggested that although AI disruption is a potential concern for the industry, the chances of Adobe reaching its ARR growth guidance have increased. The analyst believes this will help reduce the short-term downside risk for ADBE stock.
The analyst’s report demonstrates a careful optimism about Adobe’s performance in light of the current challenges. The updated price target provides a new benchmark for investors ahead of the June 12 earnings reports.
Adobe Inc. (NASDAQ:ADBE) is a prominent global software company operating across Digital Media, Digital Experience, and Publishing segments, delivering end-to-end content creation and customer experience solutions.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the best wide moat stocks to buy now. On June 9, it was announced that London-based financial services giant Barclays PLC (NYSE:BCS) plans to introduce Microsoft 365 Copilot to 100,000 employees as AI takes center stage at enterprises. A Microsoft representative said:
“Microsoft 365 Copilot will be integrated into the bank’s own colleague productivity tool, creating a single agent that enables employees to access the bank’s broad ecosystem of collaboration tools, portals and online resources all from one place, making it simpler to find information, improve productivity, and enhance employee experience,”
These AI-powered tools include an AI agent, which assists employees with different tasks, a content search feature that is personalized according to an individual’s profile, and Colleague Front Door, an agentic dashboard powered by Microsoft Viva.
The massive deal was rolled out after a pilot deployment of Microsoft 365 Copilot across 15,000 Barclays employees.
Microsoft offers a comprehensive portfolio of software, cloud infrastructure, and hardware devices. Its primary offerings include Microsoft 365, Azure, Dynamics 365, Windows, and Xbox, driving strong enterprise and consumer adoption worldwide.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best wide moat stocks to buy now. Amazon.com, Inc. (NASDAQ:AMZN) announced on June 9 that it aims to inject at least $20 billion in Pennsylvania for the expansion of data center infrastructure, building on its substantial AI investment strategy that already amounts to billions of dollars.
This highlights the undertaking of Big Tech to invest heavy sums to support the rise of generative AI, with the largest companies around the globe rushing to build the best AI models and cloud services.
Amazon’s Pennsylvania investment comes on the heels of its $10 billion North Carolina and $5 billion Taiwan cloud infrastructure investment plans less than a week ago. The Pennsylvania investment can potentially create 1,250 high-skilled jobs and support thousands more via the AWS data center supply chain.
According to Amazon.com, Inc. (NASDAQ:AMZN), Salem Township and Falls Township are the initial communities that could potentially be sites for future campuses. Amazon’s Q1 capital spending equaled nearly $25 billion, and this level of spending is projected for the rest of 2025 as well.
Amazon did not provide a specific timeline for this investment, and the company did not immediately clarify whether the $20 billion was part of its prior capital spending strategies.
The tech giant operates across North America, International, and AWS segments, with a diversified portfolio consisting of e-commerce, subscription services, cloud computing, and digital advertising.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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