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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 five Wide Moat stocks with a favorable Zacks Rank. These stocks are: The Hershey Co. HSY, Moody's Corp. MCO, CBRE Group Inc. CBRE, Mettler-Toledo International Inc. MTD and Zebra Technologies Corp. ZBRA. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.

Zacks Rank #1 Hershey is focused on strengthening innovation, supply-chain agility and commercial execution as it expands its presence across the snacking category. HSY is supported by strong pricing discipline, a successful innovation pipeline and solid growth in salty snacks.
Hershey is progressing through a multi-year transformation that modernizes and integrates its supply chain, strengthens commercial capabilities, and enhances demand forecasting and execution. HSY highlighted upgrades across procurement, production, distribution and commercial planning, supported by investments in data, analytics and digital tools.
HSY’s retail takeaway improved across core categories, reflecting better shelf execution and effective brand investment. Management expressed confidence in returning to its long-term growth algorithm in the following year.
Hershey has an expected revenue and earnings growth rate of 4.4% and 29.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% over the last seven days.
Zacks Rank #2 Moody's dominant position in the credit rating industry, along with opportunistic acquisitions and restructuring efforts to diversify revenues and footprint, will support top-line expansion.
MCO has been meaningfully growing through strategic acquisitions, increasing scale and cross-selling opportunities across products and vertical markets. In August 2025, it announced plans to secure a majority equity ownership in Middle East Rating & Investors Service. In June 2025, MCO fully acquired ICR Chile, solidifying its presence in Latin America’s domestic credit markets.
A solid rebound in bond issuance volume is expected to drive MCO’s growth. A strong balance sheet position and earnings strength are likely to keep MCO’s capital distributions sustainable.
Moody's has an expected revenue and earnings growth rate of 7.8% and 11.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% in the last seven days.
Zacks Rank #2 CBRE Group is well-positioned 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. Moreover, the BOE segment, which provides a broad suite of integrated, contractually-based outsourcing services to occupiers of real estate, including facilities management, is well-poised to grow.
CBRE Group has an expected revenue and earnings growth rate of 10.8% and 15.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% in the last seven days.
Zacks Rank #2 Mettler-Toledo is benefiting from its innovative product portfolio, strong demand for automation solutions and market share gains in product inspection. MTD’s expanded midrange product offerings have attracted new customers, while its bioprocessing-related sales remain strong, supported by unique workflow solutions.
MTD offered positive 2026 guidance, with operating margin expected to be up 60 to 70 basis points, which is flattish to slightly up on a reported basis. Strong liquidity is expected to help MTD continue its share repurchase program. Free cash flow is expected to be approximately $900 million in 2026, representing a 5% increase on a per share basis, with the first quarter expected to be approximately $100 million.
Mettler-Toledo International has an expected revenue and earnings growth rate of 4.6% and 8.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.2% in the last 30 days.
Zacks Rank #2 Zebra Technologies is benefiting from an increase in sales of mobile computing and data capture solutions within the Enterprise Visibility & Mobility segment. Higher sales of RFID products are boosting the Asset Intelligence & Tracking segment’s performance.
ZBRA is focusing on advancing digital capabilities, optimizing supply chain and expanding data analytics capabilities to engage with its customers. ZBRA’s efforts to reward shareholders also hold promise. ZBRA engages in bolt-on acquisitions to expand its business geographically.
Zebra Technologies has an expected revenue and earnings growth rate of 10.8% and 13.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.7% over the last 30 days.
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This article originally published on Zacks Investment Research (zacks.com).
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