The wide moat investment strategy implies investing in companies that not only lead their industries today but are also strategically fortified to dominate in the future. The business models of these companies possess durable competitive advantages that shield them from competitors. This strategy isn't just about short-term gains, but securing a portfolio of stocks that can weather economic storms and continue to deliver stable and predictable returns.
This investment strategy features companies with unique strengths such as brand recognition, patent protection, proprietary technology, and network effects. These moats ensure long-term profitability and market leadership, making such companies resilient in volatile markets.
Here we recommend three wide moat stocks with a favorable Zacks Rank. These stocks have solid short-term upside and strong long-term growth potential. These stocks are NVIDIA Corp. NVDA, Visa Inc. V and Intuit Inc. INTU.
3 Wide Moat Stocks to Buy
These three stocks have strong revenues and earnings growth potential for 2025 as well as impressive earnings growth potential for the long-term (3-5 years). Moreover, these stocks have seen positive earnings estimate revisions over the past 30 days. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Zacks Investment Research
Image Source: Zacks Investment Research
NVIDIA
NVIDIA — the undisputed global leader of generative artificial intelligence (AI)-powered graphical processing units (GPUs) — has been able to keep the flag high with its path-breaking vision, innovation and solid execution, irrespective of recent headwinds. NVDA reported outstanding fourth-quarter fiscal 2025 earnings results and offered equally bright guidance for first-quarter fiscal 2026.
This was primarily buoyed by rock-solid demand for its AI-powered GPUs that downplayed the Chinese DeepSeek-related availability of low-cost solution concerns. CEO Jensen Huang said that the next-generation AI model requires more computing power. Per Huang, “The amount of computation necessary to do that reasoning process is 100 times more than what we used to do.”
In addition to Blackwell, on June 2, 2024, NVDA unveiled its new AI chip architecture called Rubin. The Rubin architecture will have new GPUs to launch AI systems, CPUs and networking chips. It will also have new features like a central processor called Vera. Rubin is expected to be introduced in 2026.
Lucrative Short-Term Price Upside Potential for NVDA Stock
NVIDIA has an expected revenue and earnings growth rate of 50.9% and 46.8%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.3% in the past 30 days. It has a long-term earnings growth rate of 25.7% compared with the S&P 500’s 12.7%.
NVDA currently carries a forward P/E of 27.73X for the current-year, compared with 29.06X for the industry and 18.14X for the S&P 500. It has a return on equity (ROE) of 112.33% compared with 6.44% for the industry and 16.98% for the S&P 500.
The short-term average price target of brokerage firms for the stock represents an increase of 45.1% from the last closing price of $119.53. The brokerage target price is currently in the range of $130-$220. This indicates a maximum upside of 84.1% and no downside.
Visa
Visa has operated as a leader in payment technology space in the United States and internationally for nearly seven decades. It operates VisaNet, a transaction processing network that enables authorization, clearing and settlement of payment transactions. V also offers credit, debit, and prepaid cards.
Visa’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. It expects net revenues to grow in low double-digits in fiscal 2025. V’s growth is fueled by continued increases in payments, cross-border volumes and sustained investments in technology. It is witnessing significant profit growth.
The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. V has embedded AI and generative AI into more than 100 products, primarily for fraud prevention and cybersecurity.
Visa has invested $3.5 billion in the past 10 years in order to rebuild its data platform. V’s technology helps prevent $40 billion in fraud attempts annually. Through strategic diversification, innovation, and AI-driven security, V is well-positioned for long-term growth.
Impressive Short-Term Upside Potential for V Shares
Visa has an expected revenue and earnings growth rate of 10.2% and 12.5%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the past seven days.
Visa has a long-term earnings growth rate of 12.9% compared with the S&P 500’s growth rate of 12.7%. V has a current dividend yield of 0.71%. Moreover, it currently has an ROE of 54.79%, compared with the industry’s ROE of 13.71% and the S&P 500’s ROE of 16.98%.
The short-term average price target of brokerage firms for the stock represents an increase of 15.4% from the last closing price of $334.55. The brokerage target price is currently in the range of $310-$410. This indicates a maximum upside of 22.6% and a downside of 7.3%.
Intuit
Intuit has been benefiting from steady revenues from the Online Ecosystem and Desktop business segments. INTU’s strong momentum in Online Services revenues is driven by the solid performance of Mailchimp, payroll and Money, which includes payments, capital and bill pay.
INTU’s Credit Karma business is benefiting from strength in Credit Karma Money, credit cards, auto insurance and personal loans. INTU’s strategy of shifting its business to a cloud-based subscription model will help generate stable revenues over the long run. Cloud is a flourishing part of the technology space and has been gaining momentum in recent years.
Intuit’s generative AI-powered "Intuit Assist," provides a financial assistant, enabling personalized insights and recommendations, integrated into products like TurboTax, Credit Karma, QuickBooks, and Mailchimp, aiming to fuel small business and personal financial success.
Excellent Short-Term Upside Potential for INTU Stock
Intuit has an expected revenue and earnings growth rate of 12.4% and 14.1%, respectively, for the current year (ending July 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.3% in the past 30 days.
Intuit has a long-term earnings growth rate of 14.5% compared with the S&P 500’s growth rate of 12.7%. INTU has a current dividend yield of 0.69%. Moreover, it currently has an ROE of 19.18%, compared with the industry’s ROE of 17.42% and the S&P 500’s ROE of 16.98%.
The short-term average price target of brokerage firms for the stock represents an increase of 20.7% from the last closing price of $602.11. The brokerage target price is currently in the range of $530-$860. This indicates a maximum upside of 42.8% and a downside of 12%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
