Wide Moat Stocks

Wide moat stocks typically have significant competive advantages over their competitors that allow them to fight off competition and maintain high returns on capital. A moat can come in several forms. Some firms create moats through a superior brand. Others do it via pricing power that competitors can't match. Still others do it through operational advantages. Our system to identify moats uses criteria adapted from our Warren Buffett model. It looks for firms with consistent growth in earnings over time and consistently high returns on equity and returns on total capital.

Stocks with Wide Competitive Moats

Ticker Price Market Cap
($mil)
ORLY $696.87 $46,954
LOW $254.02 $171,145
FICO $433.70 $11,865
MTD $1,675.17 $38,505
SPGI $475.10 $114,499
NSP $116.59 $4,489
AAPL $179.29 $2,941,503
MA $360.78 $354,487
LLY $276.43 $264,431
MED $207.79 $2,414
CE $165.48 $18,387
ITW $245.71 $77,124
KLAC $432.15 $65,524
ROK $348.34 $40,412
POOL $561.21 $22,498
LRCX $716.10 $100,826
TXN $191.10 $176,486
WSM $167.66 $12,468
BBY $99.52 $24,478
HSY $190.97 $39,341
EVR $137.88 $6,144
CLX $171.93 $21,124
AMGN $225.77 $127,168
BAH $84.68 $11,338
AMAT $159.64 $141,842
REGN $638.46 $68,662
MSFT $341.25 $2,562,098
ADP $246.07 $103,690
ZTS $244.25 $115,561
LOGI $84.28 $14,665
TSCO $231.17 $26,311
MMM $177.64 $102,366
BWXT $48.18 $4,442
ASML $804.77 $334,829
PAYX $135.85 $49,009
NVDA $303.22 $758,050
TNET $97.50 $6,421
FDS $487.73 $18,359
CHE $532.53 $8,198
WDFC $244.20 $3,348
DG $228.32 $52,903
TTC $99.35 $10,381
LULU $400.07 $51,934
TREX $134.74 $15,511
ADBE $569.36 $270,902
ROL $33.52 $16,493
LECO $140.26 $8,282
ACN $415.27 $273,386
NEU $348.66 $3,709
COST $564.64 $250,380
CPRT $149.75 $35,519
FAST $63.88 $36,741
TSM $122.06 $575,981
INFY $25.30 $105,552
SEIC $63.16 $8,798
ODFL $356.64 $41,018
CMI $217.53 $31,114
MNST $94.70 $50,109
DCI $58.70 $7,255
INTU $649.78 $183,996
CRVL $208.45 $3,694
EXPO $116.27 $6,059
APH $87.12 $52,100
EMR $92.89 $55,530
FHI $37.77 $3,658
CHKP $117.68 $15,628
PAYC $420.99 $25,270
ALGN $656.37 $51,757
WSO $305.99 $11,863
JKHY $167.38 $12,393
GNTX $35.01 $8,281
SNA $216.90 $11,612
CORT $19.18 $2,214
GRMN $135.76 $26,110
BIG $43.08 $1,403
PETS $26.56 $556
LOPE $85.43 $3,423
MGPI $87.20 $1,915
ATHM $27.12 $3,596
BIIB $235.99 $34,665
APTV $162.63 $43,994
ICLR $306.05 $24,912
Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach. The model portfolios offered on Validea are concentrated and as a result they will exhibit high levels of volatility and their performance can be substantially impacted by the performance of individual positions.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.