In this article, we will discuss the 11 Best Wide Moat Stocks to Buy Right Now.
As per S&P Global, the US policy uncertainty, while declining, continues to impact the global macro picture. The firm also opines that recent global macro data remains somewhat stronger than expected. This includes national accounts data for Q2 for several economies.
What Lies Ahead?
S&P Global raised its growth outlook modestly. Much of the revision was due to the stronger second-quarter base effect. The firm expects marginally higher GDP growth in all major economies in 2025. It lifted its US forecast by 20 bps, the eurozone by 30 bps, and China by 30 bps. For the outer years of 2026 and beyond, S&P Global’s forecasts were little changed. However, the US was an exception, where the firm increased its 2026 growth to 1.8%. This is because supply-side reforms and somewhat lower policy uncertainty tend to fuel growth modestly.
Amidst such trends, we will now have a look at the 11 Best Wide Moat Stocks to Buy Right Now.
Our Methodology
To list the 11 Best Wide Moat Stocks to Buy Right Now, we sifted through several wide moat ETFs to shortlist the stocks that have a wide economic moat. After getting an extensive list, we chose the ones popular among hedge funds, as of Q2 2025. Finally, the stocks are arranged in ascending order of the hedge fund sentiments.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Wide Moat Stocks to Buy Right Now
11. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 51
U.S. Bancorp (NYSE:USB) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide moat stems from the switching costs and cost advantages. On September 30, Evercore ISI lifted the price target on the company’s stock to $54 from $49, while keeping an “In Line” rating, as reported by The Fly. As per the analyst, the regional bank and specialty finance trends appear solid for Q3 2025. However, the full momentum in earnings might not be seen until early 2026, added the firm’s analyst.
Notably, in Q2 2025, U.S. Bancorp (NYSE:USB)’s YoY top-line revenue growth, along with the continued expense discipline, led to the 250 bps of positive operating leverage, as adjusted, as well as an efficiency ratio of 59.2%. U.S. Bancorp (NYSE:USB)’s results demonstrated continued momentum throughout several of its diversified fee income businesses, which now make up ~42% of the company-wide revenue. U.S. Bancorp (NYSE:USB)’s fee growth was helped by the payment services revenue, trust and investment management fees, and treasury management fees.
10. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the Best Wide Moat Stocks to Buy Right Now. The company possesses a wide economic moat, which is backed by its intellectual property and brand reputation. On October 6, the company announced the launch of AmgenNow, which is a new direct-to-patient program starting with Repatha® (evolocumab). This comes after the landmark results reflecting that Repatha significantly reduced the risk of major adverse cardiovascular events in individuals without a prior history of heart attack or stroke in the VESALIUS-CV Phase 3 trial. Amgen Inc. (NASDAQ:AMGN) further added that, in support of the Trump Administration’s focus on lowering the drug prices for Americans, Repatha would be available via AmgenNow at a monthly price of $239, ~60% lower than the current US list price.
Elsewhere, Amgen Inc. (NASDAQ:AMGN) announced a $650 million expansion of the US manufacturing network, targeting to support increased drug production at its biologics manufacturing facility in Juncos and integrate innovative advanced technologies across the operations process. Notably, the expansion strengthens Amgen Inc. (NASDAQ:AMGN)’s commitment to the US biomanufacturing and the resilience of its global supply chain.
Aristotle Capital Management, LLC, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Amgen Inc. (NASDAQ:AMGN), the biopharmaceutical company, was one of the largest detractors for the quarter. While the company’s branded drugs continued to advance (a previously identified catalyst), with cholesterol medicine Repatha, osteoporosis treatment Evenity and bone-strengthening drug Prolia all growing sales in the double digits, concerns surrounding potential tariff impacts, tax reform and pressure on drug prices weighed on shares. We believe it is too early to assess the full impact of these macro uncertainties and are confident in Amgen’s demonstrated ability to adapt through evolving policy and pricing dynamics. The company reaffirmed its long-term commitment to domestic manufacturing and innovation through its upcoming $2 billion expansions in Ohio and North Carolina, building on more than $5 billion in U.S. operational investments since 2017. Furthermore, Amgen continued to advance its robust pipeline, as its 1L bemarituzumab (bema) phase 3 trial for gastric cancer met its primary endpoint, and MariTide, the company’s weight-loss drug, demonstrated strong efficacy in phase 1 and 2 trials. MariTide, which could offer more convenient monthly dosing compared to daily or weekly regimens, showed promising early results, though tolerability will be an important focus heading into phase 3. Management noted that modified dose ramp-up strategies may help mitigate these effects. Despite near-term pressures, we remain encouraged by Amgen’s continued market share gains across key therapies and the potential to enhance the company’s competitiveness and resilience in a dynamic healthcare landscape.”
9. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
PepsiCo, Inc. (NASDAQ:PEP) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide economic moat is backed by its robust brand portfolio and significant scale benefits. On October 1, TD Cowen analyst Robert Moskow maintained a “Hold” rating on the company’s stock, setting a price objective of $155.00. The analyst’s rating is backed by a combination of factors, which include PepsiCo, Inc. (NASDAQ:PEP)’s current strategic position and market conditions. The analyst opines that, despite the presence of activist investor Elliott, there are expectations that the company will demonstrate a greater sense of urgency when it comes to enhancing shareholder value, mainly via cost management.
While some investors doubt the impact of Elliott’s suggestions, the analyst believes that there is potential for PepsiCo, Inc. (NASDAQ:PEP) to improve operational efficiency by addressing weaker demand in some segments and optimizing manufacturing capacity. As a result, this can lead to margin expansion and offer a positive short-term catalyst for the company’s stock.
RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q2 2025 investor letter. Here is what the fund said:
“PepsiCo, Inc. (NASDAQ:PEP): PEP was a modest detractor in Q2, as soft beverage volume and margin pressure led to a weaker-than-expected results. The company reported revenue of $17.9 billion, down 1.8% year-over-year, as FX headwinds and promotional activity in North America impacted performance. EPS also declined year-over-year, and guidance remained cautious given ongoing input cost inflation.
Despite solid international performance, investor sentiment was dampened by concerns over slowing U.S. consumption and rising competitive intensity. Analysts revised margin expectations slightly lower for the back half of the year, and the stock trailed other staples during the quarter.
We continue to view PepsiCo as a high-quality, defensive compounder with strong global brands and consistent cash generation. With a growing dividend, geographic diversification, and strong balance sheet, we believe PepsiCo remains a great investment.”
8. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 81
Applied Materials, Inc. (NASDAQ:AMAT) is one of the Best Wide Moat Stocks to Buy Right Now. Applied Materials, Inc. (NASDAQ:AMAT) enjoys a wide moat, which stems from its broadest portfolio and healthy market share. On October 8, Wells Fargo lifted the price target on the company’s stock to $250 from $240, while keeping an “Overweight” rating, as reported by The Fly. As per the firm, SEMICON West reinforced the positive long-term secular position of semi-cap. Furthermore, the near-term demand commentary is unchanged, with the meetings highlighting that the enthusiasm for emerging AI NAND opportunities has yet to bring in a change in near-term order trajectory.
Amidst increased uncertainty and lower visibility in the near term, Applied Materials, Inc. (NASDAQ:AMAT) remains optimistic about the longer-term growth opportunities for the broader semiconductor industry. Applied Materials, Inc. (NASDAQ:AMAT) continues to navigate and adapt to the near-term uncertainties via its strong supply chain, global manufacturing footprint, and deep customer relationships.
Heartland Advisors, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“During the quarter, we initiated a new position in Applied Materials, Inc. (NASDAQ:AMAT), the largest and most diversified supplier of capital equipment, services, and solutions for semiconductor manufacturing. The company is a major supplier of wafer fabrication equipment (WFE), controlling 21% market share, which was built over decades of organic and inorganic growth. It is the world’s dominant player in deposition, a highly precise, mission-critical step in the fabrication process where a thin film imparts electrical characteristics to the wafer’s surface at the atomic level.
We capitalized on the cyclical downturn in the semiconductor industry to purchase AMAT near our downside target. Our confidence in the company was further strengthened by insider buying, especially a $7mm stock purchase by CEO Gary Dickerson in early April.
In our opinion, Applied Materials will enjoy several tailwinds, including increased demand for advanced packaging and complex manufacturing processes fueled by rising chip architecture complexity. That should boost WFE spending, positioning AMAT as a secular beneficiary.
These tailwinds should lead to a re-rating of the stock as a premier analog semiconductor manufacturer along with Texas Instruments and Analog Devices, which command a multiple well above 25x earnings. At that multiple, AMAT shares could trade in the low $300 range based on mid-cycle EPS, up from its current price of around $170 a share.”
7. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 81
NIKE, Inc. (NYSE:NKE) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide moat stems from the intangible brand asset. On October 6, Lorraine Hutchinson, an analyst from Bank of America Securities, maintained a “Buy” rating on the company’s stock, while the associated price target remained same at $84.00. The analyst’s rating is backed by NIKE, Inc. (NYSE:NKE)’s improved sales performance, mainly due to the healthy unit volumes throughout various regions. As per the analyst, the rise in units sold, primarily in apparel and footwear, exhibits a positive trend.
Furthermore, this growth was helped by the new distribution points as well as value channel sales. While NIKE, Inc. (NYSE:NKE)’s gross margin witnessed contraction in Q1 2026, there is an anticipation of sequential improvement in H2 of the year. The expected improvement is backed by the lapping of previous wholesale support actions, which can help offset challenges due to the tariffs and market fluctuations in China and Converse. Notably, in Q1 2026, NIKE, Inc. (NYSE:NKE)’s gross margin fell 320 basis points to 42.2%.
Pershing Square Holdings, an investment holding company, released its H1 2025 investor letter. Here is what the fund said:
“NIKE, Inc. (NYSE:NKE) is in the early stages of a turnaround under new CEO Elliott Hill. In the ten months since rejoining the company, Hill has moved with urgency, replacing 12 out of his 15 direct reports and resetting the culture and organizational structure with a renewed focus on sport. Hill’s “Win Now” strategy targets a return to profitable growth by accelerating product innovation, creating distinctive marketing, and rebuilding wholesale distribution, while right-sizing inventory levels across certain product lines and sales channels following several years of overreliance on direct-to-consumer and lifestyle footwear. While a full turnaround will take time, we are beginning to see encouraging signs of progress.
In the most recent quarter, NIKE delivered results and guidance ahead of expectations. Revenue declined by 11% on a currency-neutral basis as aggressive inventory liquidation and elevated wholesale discounts weighed on results. However, momentum is building in sports performance, with running revenue growing by high-single-digits powered by new franchises such as the Vomero 18. Other near-term priorities include training with the Metcon shoe and 24/7 apparel collection, soccer with the upcoming 2026 World Cup in North America, and basketball with a Caitlin Clark signature shoe expected to be launched in spring 2026. Wholesale partners are excited about the newness, with holiday 2025 order books up year-over-year, supporting better-than-expected guidance for the current quarter of a mid-single-digit revenue decline. Management believes clearing excess inventory by the end of 2025 will allow NIKE’s order book and revenue growth to better align, enabling a return to growth in 2026.…”(Click here to read the full text)
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the Best Wide Moat Stocks to Buy Right Now. The company enjoys a wide economic moat, which is backed by significant customer switching costs and network effects. On October 7, Truist Securities reiterated its “Buy” rating on the company’s stock and price objective of $400.00, highlighting potential catalysts, which can improve investor sentiment. The firm noted that some investors have tagged Salesforce, Inc. (NYSE:CRM) as a value trap. However, the firm is confident that AI and data products would fuel improved bookings in H2 and better growth prospects into FY 2027 and beyond. Overall, the firm’s rating is backed by Agentforce’s potential as the renewed growth catalyst, and the underappreciated future earnings and cash flow.
Elsewhere, Salesforce, Inc. (NYSE:CRM) posted an outstanding Q2 2026 to close the H1, with robust performance throughout revenue, margin, cash flow, and cRPO. The company surpassed all the financial targets while achieving its 10th consecutive quarter of operating margin expansion. Salesforce, Inc. (NYSE:CRM)’s data cloud and AI annual recurring revenue exceeded $1.2 billion, reflecting a rise of 120% YoY.
Mar Vista Investment Partners, LLC, an investment management company, released its Q3 2025 investor letter. Here is what the fund said:
“Salesforce, Inc. (NYSE:CRM) stock came under pressure in Q3 as investors weighed the potential impact of trade tensions on GDP growth and IT budgets, concerns over agentic AI cannibalizing Service Cloud seats, and the slower-than-expected ramp of monetization from AI-enabled offerings such as CRM’s AgentForce.
As the global leader in SaaS-based customer relationship management software, Salesforce benefits from a vast repository of customer data. Combined with generative AI capabilities, this data can be leveraged to deliver deeper insights and improved customer outcomes. AgentForce, Salesforce’s newly launched generative AI chatbot, is designed to automate customer service tasks, which lowers costs relative to traditional call center models.
Although still early in its rollout, AgentForce has already attracted significant interest from both customers and global systems integrators. Salesforce reported that approximately 12,500 customers are currently testing AgentForce, including roughly 6,000 paying customers. We believe Salesforce is well positioned to monetize its AI initiatives over time and extend its leadership in the CRM market.”
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide moat stems from cost advantage and intangible assets. On October 7, Bank of America Securities analyst Robert Cheng reiterated a “Buy” rating on the company’s stock, setting a price objective of $330.00. The analyst’s rating is backed by a combination of factors demonstrating Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s strong future prospects. The analyst raised the EPS estimates for 2026 and 2027 because of an improved pricing outlook.
The analyst sees a strong ramp-up of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s 2nm technology in 2026. Furthermore, an increased average selling price, due to the greater proportion of US production and advanced processes, together with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s strategic overseas expansion, helps the analyst’s rating. Elsewhere, on a consolidated basis, revenue for September 2025 came in at ~NT$330.98 billion, reflecting a fall of 1.4% from August 2025 and a rise of 31.4% from September 2024. Notably, the company’s revenue for January through September 2025 amounted to NT$2,762.96 billion, up by 36.4% YoY.
Brown Advisory, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Manufactures, distributes and tests integrated circuits, silicon wafers, diodes and related semiconductor components. Taiwan Semiconductor Manufacturing benefits from its leadership in leading node manufacturing which allows it to take market share and benefit from the strong demand environment for high-performance computing and AI infrastructure.”
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide economic moat is primarily backed by its strong network effects and intangible assets. On October 9, UBS analyst Stephen Ju lifted the price target on the company’s stock to $255 from $237, while keeping a “Neutral” rating ahead of the Q3 2025 earnings report. As per the analyst, the ad revenue outlook has been improving for Alphabet Inc. (NASDAQ:GOOGL). In Q2 2025, YouTube advertising revenues rose by 13% to $9.8 billion, supported by the Direct Response advertising, followed by Brand. Notably, Network advertising revenue amounted to $7.4 billion, which was down by 1%.
Elsewhere, on October 8, Reuters reported that Alphabet Inc. (NASDAQ:GOOGL) would serve as the official cloud provider of the Los Angeles 2028 Olympic and Paralympic Games and has joined LA28 as the founding partner. Notably, the deal also extends to Team USA and NBCUniversal’s U.S. coverage. This partnership would utilise Google’s cloud infrastructure and AI tools, which include its Gemini model and new Google Search features like “AI Mode,” noted Reuters.
SaltLight Capital, an investment management company, released the Q2 2025 investor letter. Here is what the fund said:
“To illustrate our approach to navigating these uncertainties, we turn to our recent investment in Alphabet Inc. (NASDAQ:GOOGL), which exemplifies balancing innovation risks with established strengths.
Innovator’s Dilemma: Google is grappling with an Innovator’s Dilemma as it protects its $200 billion search business from a significant technological shift. To put it plainly, Google Search’s primary purpose is to act as a ‘match-maker’, guiding users to the best source for their query on the open web. However, artificial intelligence is changing this role, with AI handling much of the searching, synthesis, and answering for the user, reducing the need to visit destination websites to gather information. A natural tension is emerging.
Humans naturally gravitate towards the path of least resistance, increasingly depending on AI to undertake cognitive tasks for them. This development poses challenges for content providers and for Google itself, which derives advertising revenue from these interactions…” (Click here to read the full text)
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the Best Wide Moat Stocks to Buy Right Now. The company has a wide economic moat due to its intangible assets and strong network effects. On September 30, WSJ reported that CoreWeave inked an up to $14.2 billion contract with Meta Platforms, Inc. (NASDAQ:META) to offer the social-media company with AI cloud infrastructure. The cloud-computing contract with Meta Platforms, Inc. (NASDAQ:META) will go through 2031, noted WSJ. However, Meta would be having an option to extend the commitment for an additional year.
From a business perspective, Meta Platforms, Inc. (NASDAQ:META) is focused on pursuing 5 basic opportunities. These include improved advertising, more engaging experiences, business messaging, Meta AI, and AI devices. With respect to advertising, the strong performance in Q2 2025 was mainly due to the AI unlocking greater efficiency and gains throughout the ads system. In Q2 2025, ad impressions delivered across its Family of Apps rose by 11% YoY. The average price per ad went up by 9% YoY.
Fred Alger Management, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Meta Platforms, Inc. (NASDAQ:META) is the world’s largest social-media company, spanning Facebook, Instagram, WhatsApp and Messenger, and its Reality Labs arm pursues next-generation augmented- and virtual-reality hardware. Its Family of Apps averaged 3.4 billion daily active users in March 2025, highlighting the unrivalled scale that underpins its advertising franchise. The company’s AI powered ad-delivery tools are driving higher pricing and better campaign performance, while new initiatives—such as the rollout of ads in WhatsApp—have the potential to unlock fresh revenue streams and are supported by a cash-rich balance-sheet that now includes a quarterly dividend. Shares rose during the quarter after fiscal first-quarter results came in better-than-expected due to strong revenue growth and operating margin expansion. Additionally, management guided fiscal second-quarter revenue above consensus and trimmed full-year expense guidance even as it lifted capital-expenditure plans to accelerate AI-infrastructure build-out.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Wide Moat Stocks to Buy Right Now. The tech giant enjoys a wide economic moat, thanks to its sticky ecosystem on the heels of high customer switching costs, and strong network effects. On October 9, Bloomberg reported that Microsoft Corporation (NASDAQ:MSFT)’s data-center crunch is expected to continue for longer than the company had earlier expected, underscoring the company’s struggles to keep up with cloud demand. Several of the company’s US data center regions have been witnessing shortages of physical space or servers, noted Bloomberg.
Notably, new subscriptions for Azure cloud services remain restricted in certain critical server-farm hubs, such as Northern Virginia and Texas, through the H1 of next year. This is a longer time frame than Microsoft Corporation (NASDAQ:MSFT) previously outlined, highlighted Bloomberg. Microsoft Corporation (NASDAQ:MSFT) reported that, in FY 2025, Azure exceeded $75 billion in revenue, implying an increase of 34%, thanks to growth throughout all the workloads.
Middle Coast Investing, an investment advisor firm, released its Q3 2025 investor letter. Here is what the fund said:
“Big tech companies play in and are obviously affected by AI. We own Amazon (AMZN), Apple (AAPL), and a small position of Microsoft Corporation (NASDAQ:MSFT); of those, Microsoft has been seen as a winner due to its association with OpenAI. But really, the story seems to be that Microsoft’s Azure is gaining ground on Amazon Web services. AI is the source of demand driving the continued growth.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Wide Moat Stocks to Buy Right Now. The company enjoys a wide moat, which stems from its strong network effects and intangible assets. On October 7, analyst John Blackledge of TD Cowen reiterated a “Buy” rating on the company’s stock, retaining the price objective of $255.00. The analyst’s rating is backed by a combination of factors, which include expected revenue growth in Amazon.com, Inc. (NASDAQ:AMZN)’s key business segments like AWS, advertising, and eCommerce. The analyst expects the company’s Q3 2025 to exceed the consensus estimates, thanks to the continued expansion in such areas.
Additionally, the analyst sees a healthy Q4 2025 guidance, with AWS growth accelerating and advertising maintaining its strong performance. AWS, despite lagging behind the cloud peers, remains well-placed for revenue growth acceleration in the latter half of 2025 and beyond, fueled by higher demand for GenAI workloads. Such expected growth stems from Amazon.com, Inc. (NASDAQ:AMZN)’s significant investments in AI infrastructure, which are anticipated to alleviate the supply constraints. Furthermore, the contribution from partnerships such as Anthropic is expected to enhance AWS’ YoY growth, further cementing the favourable outlook for Amazon.com, Inc. (NASDAQ:AMZN)’s stock.
Mairs & Power, an investment advisor, released the Q2 2025 investor letter. Here is what the fund said:
“The Fund also started a new position in Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, where the company is well positioned to continue capturing market share in retail while also growing its market leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an opportunity to build a position.”
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: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.
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