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Buy 5 Wide Moat Stocks to Enhance Your Portfolio Returns
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Key Takeaways
Adobe, Disney, Intuit, Rollins and JNJ all offer wide moat business models with strong potential in 2H2025.
Each company shows solid earnings and revenue growth expectations with estimate revisions trending upward.
Unique assets like AI tools, strong brands, and strategic acquisitions reinforce long-term market dominance.
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 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 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.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Adobe Inc.
Adobe has extensively implemented AI applications across its flagship products, such as Photoshop, Illustrator, Lightroom, and Premiere. Earlier this year, ADBE introduced generative AI-driven Adobe Firefly. Moreover, Adobe Acrobat and Reader AI Assistant help users summarize documents and answer questions, saving time and helping them accomplish tasks faster.
Using its new AI-driven cloud-based platform, ADBE is also diversifying into digital marketing services, offering data mining services that help businesses measure page views, purchases and social media sites. Adobe Marketing Cloud enables marketers to deliver personalized web experiences across multiple devices, manage multichannel campaigns and optimize media monetization.
ADBE has launched Adobe Express, an application for quick editing effects. Leveraging generative AI, this tool is useful for short-form video content like Instagram Reels. Adobe also launched an AI-based Express app for iOS and Android.
Adobe has an expected revenue and earnings growth rate of 9.5% and 12%, respectively, for the current year (ending November 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 30 days.
The Walt Disney Co.
The Walt Disney is benefiting from strength in Domestic Parks & Experiences revenues driven by growth at domestic parks, Disney Vacation Club and Disney Cruise Line, partially offset by decline at international locations including Shanghai Disney Resort and Hong Kong Disneyland Resort.
In Entertainment, DIS expects double-digit percentage operating income growth in fiscal 2025. ESPN continues to reinforce its position as a sports-dominant platform, with the second quarter delivering its most-watched primetime ever and 32% viewership growth in the key 18-49 demographic.
DIS has successfully transformed its streaming business from a loss-leader to a profitable growth engine. After reporting its first-ever Direct-to-Consumer (DTC) operating profit in fiscal year 2024, the momentum has accelerated in fiscal year 2025 with second-quarter DTC operating income reaching $336 million.
The Walt Disney has an expected revenue and earnings growth rate of 4.1% and 16.30%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.3% in the last 60 days.
Intuit Inc.
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.
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.
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 has an expected revenue and earnings growth rate of 11.7% and 13.7%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the last 90 days.
Rollins Inc.
Rollins stands out with its strategic use of technology and disciplined acquisitions. Tools like BOSS and Orkin 2.0 have redefined ROL’s field operations, improved customer service and cut costs.
Innovations such as VRM and BizSuite enhance ROL’s scheduling and commercial sales, while a strong cash position and zero debt reflect prudent financial management. With 44 acquisitions in 2024 alone and rising dividends, ROL inspires investor confidence and promises long-term growth.
Rollins has an expected revenue and earnings growth rate of 10.7% and 12.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days.
Johnson & Johnson
Johnson & Johnson reported strong second-quarter 2025 earnings results wherein both top and bottom lines beat the Zacks Consensus Estimate. JNJ’s Innovative Medicine unit is showing a growth trend, driven by key products like Darzalex, Tremfya and Erleada and continued uptake of new launches, like Spravato, Carvykti and Tecvayli.
Though in the MedTech segment, JNJ’s sales are being hurt due to headwinds in China and competitive pressure in some categories, the Cardiovascular segment is contributing to growth. Johnson & Johnson expects sales growth in both segments to be higher in the second half than in the first. JNJ is making rapid progress with its pipeline and has been on an acquisition spree lately.
Johnson & Johnson has an expected revenue and earnings growth rate of 5.2% and 8.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last seven days.
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Buy 5 Wide Moat Stocks to Enhance Your Portfolio Returns
Key Takeaways
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 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 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 have solid short-term price upside potential. The stocks are Adobe Inc. (ADBE - Free Report) , The Walt Disney Co. (DIS - Free Report) , Intuit Inc. (INTU - Free Report) , Rollins Inc. (ROL - Free Report) and Johnson & Johnson (JNJ - Free Report) . 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 five picks in the past three months.
Image Source: Zacks Investment Research
Adobe Inc.
Adobe has extensively implemented AI applications across its flagship products, such as Photoshop, Illustrator, Lightroom, and Premiere. Earlier this year, ADBE introduced generative AI-driven Adobe Firefly. Moreover, Adobe Acrobat and Reader AI Assistant help users summarize documents and answer questions, saving time and helping them accomplish tasks faster.
Using its new AI-driven cloud-based platform, ADBE is also diversifying into digital marketing services, offering data mining services that help businesses measure page views, purchases and social media sites. Adobe Marketing Cloud enables marketers to deliver personalized web experiences across multiple devices, manage multichannel campaigns and optimize media monetization.
ADBE has launched Adobe Express, an application for quick editing effects. Leveraging generative AI, this tool is useful for short-form video content like Instagram Reels. Adobe also launched an AI-based Express app for iOS and Android.
Adobe has an expected revenue and earnings growth rate of 9.5% and 12%, respectively, for the current year (ending November 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 30 days.
The Walt Disney Co.
The Walt Disney is benefiting from strength in Domestic Parks & Experiences revenues driven by growth at domestic parks, Disney Vacation Club and Disney Cruise Line, partially offset by decline at international locations including Shanghai Disney Resort and Hong Kong Disneyland Resort.
In Entertainment, DIS expects double-digit percentage operating income growth in fiscal 2025. ESPN continues to reinforce its position as a sports-dominant platform, with the second quarter delivering its most-watched primetime ever and 32% viewership growth in the key 18-49 demographic.
DIS has successfully transformed its streaming business from a loss-leader to a profitable growth engine. After reporting its first-ever Direct-to-Consumer (DTC) operating profit in fiscal year 2024, the momentum has accelerated in fiscal year 2025 with second-quarter DTC operating income reaching $336 million.
The Walt Disney has an expected revenue and earnings growth rate of 4.1% and 16.30%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.3% in the last 60 days.
Intuit Inc.
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.
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.
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 has an expected revenue and earnings growth rate of 11.7% and 13.7%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the last 90 days.
Rollins Inc.
Rollins stands out with its strategic use of technology and disciplined acquisitions. Tools like BOSS and Orkin 2.0 have redefined ROL’s field operations, improved customer service and cut costs.
Innovations such as VRM and BizSuite enhance ROL’s scheduling and commercial sales, while a strong cash position and zero debt reflect prudent financial management. With 44 acquisitions in 2024 alone and rising dividends, ROL inspires investor confidence and promises long-term growth.
Rollins has an expected revenue and earnings growth rate of 10.7% and 12.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days.
Johnson & Johnson
Johnson & Johnson reported strong second-quarter 2025 earnings results wherein both top and bottom lines beat the Zacks Consensus Estimate. JNJ’s Innovative Medicine unit is showing a growth trend, driven by key products like Darzalex, Tremfya and Erleada and continued uptake of new launches, like Spravato, Carvykti and Tecvayli.
Though in the MedTech segment, JNJ’s sales are being hurt due to headwinds in China and competitive pressure in some categories, the Cardiovascular segment is contributing to growth. Johnson & Johnson expects sales growth in both segments to be higher in the second half than in the first. JNJ is making rapid progress with its pipeline and has been on an acquisition spree lately.
Johnson & Johnson has an expected revenue and earnings growth rate of 5.2% and 8.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last seven days.