Buy 3 Wide Moat Stocks to Enhance Your Portfolio Returns in Q4

The wide moat strategy involves investing in companies that not only lead their industries but are also strategically fortified to maintain dominance in the future. The business models of these companies possess durable competitive advantages that shield them from competitors. This strategy isn't just about recording short-term gains, but securing a portfolio of stocks that can weather economic storms and deliver stable and predictable returns.

This investment strategy focuses on 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 the companies resilient in volatile markets.

Here we recommend three Wide Moat stocks with a favorable Zacks Rank. These stocks are: Moody's Corp. MCO, Stryker Corp. SYK and CBRE Group Inc. CBRE. Each of our picks 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 three picks year to date.

Moody's Corp.

Moody's dominant position in the credit rating industry, along with opportunistic acquisitions and restructuring efforts to diversify revenues and footprint, supports top-line expansion. A solid rebound in bond issuance volume is expected to drive MCO’s growth in future. A strong balance sheet position and earnings strength are likely to keep MCO’s capital distributions sustainable.

Moody’s has been meaningfully growing through strategic acquisitions, increasing scale and cross-selling opportunities across products and vertical markets. In August 2025, MCO announced its plans to secure a majority equity ownership in Middle East Rating & Investors Service (MERIS).

In June 2025, MCO fully acquired ICR Chile, strengthening its presence in Latin America’s domestic credit markets (in 2019, the company had acquired a minority stake in ICR Chile). In 2024, MCO announced the acquisition of Numerated Growth Technologies and a 100% stake in GCR to deepen its presence in Africa’s credit market.

Moody’s has an expected revenue and earnings growth rate of 8.2% and 15.7%, respectively, for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 0.3% in the past seven days. 

Stryker Corp.

Stryker is delivering robust growth, supported by diversified businesses across Orthopaedics and MedSurg & Neurotechnology, with innovation-led momentum from Mako SmartRobotics, trauma solutions, and emergency care platforms. SYK’s strong first-half 2025 led, management to raise full-year organic growth guidance to 9.5–10%. 

SYK’s recent product launches—LIFEPAK 35, Pangea plating, Insignia hip—strengthen the product cycle of SYK. At the same time, acquisitions like Inari broaden SYK’s vascular footprint. Margin expansion is fueled by pricing, mix, and cost efficiency.

Stryker has an expected revenue and earnings growth rate of 9.8% and 9.5%, respectively, for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 1.6% in the past 90 days. 

CBRE Group Inc.

CBRE Group is well-poisitioned to gain from its wide range of real estate products and services. CBRE has opted for a better-balanced and more resilient business model in recent years and continues to gain from its diversification efforts. 

CBRE’s outsourcing business remains healthy, and its pipeline is likely to remain elevated, offering scope for growth. Strategic buyouts and technology investments are expected to drive CBRE’s performance. We expect total revenues to increase 11.1% and 7% year over year in 2025 and 2026, respectively.

CBRE Group has an expected revenue and earnings growth rate of 9.8% and 15.1%, respectively, for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 0.4% in the past 30 days. 

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research