Wide-moat stocks are companies with strong, sustainable advantages that protect them from competition. Their competitive advantages ensure long-term profitability, making these companies sound investments.
There are many ways for a business to build a wide moat. Some wide-moat companies have recognizable brands that attract customers or allow them to charge premium prices. A company can build an economic moat if it's able to reduce its fixed costs lower than those of its competitors. Regulatory barriers can also provide a moat by preventing other companies from entering a market.
Best wide-moat stocks in 2026
Here are the five best wide-moat stocks and the competitive advantages they have.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Visa (NYSE:V) | $627.8 billion | 0.74% | Diversified Financial Services |
| Adobe (NASDAQ:ADBE) | $124.0 billion | 0.00% | Software |
| Fair Isaac (NYSE:FICO) | $37.2 billion | 0.00% | Software |
| ASML (NASDAQ:ASML) | $526.6 billion | 0.54% | Semiconductors and Semiconductor Equipment |
| Costco Wholesale (NASDAQ:COST) | $427.7 billion | 0.53% | Food and Staples Retailing |
1. Visa
Here's a quick way to get an idea of the economic moat that Visa (V +0.17%) has. Grab your wallet, pull out your credit and debit cards, and see how many have the word Visa printed on them.
NYSE: V
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NASDAQ: ADBE
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These are all widely used and highly recognizable products. Photoshop may not be the only image editing software, but it's the first one that comes to mind for most people. Adobe is also constantly innovating. In recent years, it has been incorporating artificial intelligence (AI) tools into its product line.
For its 2025 fiscal year, Adobe reported $7.1 billion in net income, a 28% increase from the prior year. With the strength of its products and its AI upgrades, Adobe still has plenty of room to grow.
3. Fair Isaac Corporation
Fair Isaac Corporation (FICO -0.89%), or FICO for short, is an analytics company that develops credit scoring models. It's the company behind the FICO® Score model, which is the industry standard for lending decisions. While there are other types of credit scores, 90% of top lenders use FICO® Scores.
NYSE: FICO
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FICO charges financial institutions for its credit scores, and it has dozens of different types of scores to serve various markets. There are FICO® Scores for credit card companies, auto lenders, and mortgage lenders. It also has subscription plans that consumers can purchase to stay on top of their credit.
The fact that FICO® Score is the default score option is a significant competitive moat that has helped it increase profits over the years. It reported net income of $651.9 billion in its 2025 fiscal year, a 27% year-over-year increase.
4. ASML
Semiconductors are a vital component of many of the technologies we use daily, including computers and smartphones. ASML (ASML +2.07%) manufactures lithography systems, a key part of semiconductor production. Companies use lithography systems to etch patterns onto the wafers of their semiconductor chips.
NASDAQ: ASML
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NASDAQ: COST
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Unlike other stores, Costco doesn't carry a huge variety of products. Warehouses carry about 4,000 stock-keeping units (SKUs), compared to about 30,000 at most supermarkets and 140,000 at a typical Walmart (NYSE:WMT).
Because Costco makes so much money from memberships, it can accept much lower profit margins than most retailers. Its relatively small selection of products also gives it more negotiating power with suppliers. Suppliers know that their products will have less competition at Costco and that shoppers trust Costco to stock only high-quality products.
Future outlook for wide-moat stocks
Wide-moat stocks aren't going anywhere, but now more than ever, companies need to continually innovate to protect their competitive advantages. Technological disruptions are one of the ways companies lose their moats, and AI technology is affecting businesses across every market sector.
All five companies on this list have incorporated AI tools into their operations. For these and other wide-moat businesses, AI can strengthen competitive advantages. For example, Costco uses AI to personalize the member experience and improve operational efficiency.
While a wide moat ideally lasts at least 20 years, that's not guaranteed, especially with AI possibly weakening or eliminating what once seemed like strong moats. Investors in wide-moat stocks should keep an eye out for companies that may lose their moats and others that could take their places.
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