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Buy 5 Non-Tech Wide Moat Stocks for a Stable Portfolio in 2H 2026
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Key Takeaways
Caterpillar benefits from AI data center power demand and plans to double related output.
Visa sees growth from payment volumes, cross-border activity and AI-driven fraud services.
Starbucks, Coca-Cola and Estee Lauder advance growth via turnarounds, innovation and digital reach.
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.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Caterpillar Inc.
Zacks Rank #1 Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment.
CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.
Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.8% in the last 60 days.
Visa Inc.
Zacks Rank #2 Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
V’s fiscal second-quarter results showed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. Management guides to low-teens revenue growth for fiscal 2026.
Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. Visa has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has an expected revenue and earnings growth rate of 13.4% and 14.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 60 days.
Starbucks Corp.
Zacks Rank #1 Starbucks is benefiting from steady International segment momentum, operational execution and meaningful progress under its “Back to Starbucks” turnaround plan. SBUX’s growth in international markets, along with innovations in delivery and digital channels, added to the positives.
In second-quarter fiscal 2026, SBUX’s International revenues rose 9.9%, while comparable sales increased 2.6% on 2.1% transaction growth. The company emphasizes operational efficiency, coffeehouse portfolio optimization and menu innovation to drive growth. SBUX’s focus on digital loyalty, new product platforms and partnerships bodes well.
Starbucks has an expected revenue and earnings growth rate of 2.9% and 12.7%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 4.3% over the last 60 days.
The Coca-Cola Co.
Zacks Rank #2 Coca-Cola is benefiting from the strength of its portfolio breadth, consistent share gains and improving margins driven by pricing and productivity efforts. Innovation, marketing and digital initiatives are enhancing consumer engagement and execution, while diversified categories reduce risk.
KO projects steady organic revenue and EPS growth, backed by a durable global distribution moat. Our model predicts KO’s organic revenue growth of 4.8% and comparable EPS to grow 8.8% for 2026. KO’s robust cash generation supports reinvestments and sustainable shareholder returns, including continued dividend growth.
Coca-Cola has an expected revenue and earnings growth rate of 3% and 8.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 60 days.
The Estée Lauder Companies Inc.
Zacks Rank #2 Estée Lauder continues to gain traction as its Profit Recovery and Growth Plan supports margin recovery, operational efficiencies and stronger sales visibility. The Beauty Reimagined strategy, digital expansion and portfolio investments are helping EL improve innovation, consumer reach and online engagement, while emerging markets and improving trends in Mainland China provide long-term growth support.
Online sales growth, stronger social commerce momentum and broader distribution across Sephora, Amazon Premium Beauty and TikTok Shop continue to strengthen the company’s omnichannel position, positioning EL for a more sustainable long-term recovery and growth trajectory.
The Estée Lauder Companies has an expected revenue and earnings growth rate of 3.7% and 31.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 3.9% over the last 60 days.
Image: Bigstock
Buy 5 Non-Tech Wide Moat Stocks for a Stable Portfolio in 2H 2026
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 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 non-tech Wide Moat stocks with a favorable Zacks Rank. These stocks are: Caterpillar Inc. (CAT - Free Report) , Visa Inc. (V - Free Report) , Starbucks Corp. (SBUX - Free Report) , The Coca-Cola Co. (KO - Free Report) and The Estée Lauder Companies Inc. (EL - Free Report) . 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 in the past three months.
Image Source: Zacks Investment Research
Caterpillar Inc.
Zacks Rank #1 Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment.
CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.
Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.8% in the last 60 days.
Visa Inc.
Zacks Rank #2 Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
V’s fiscal second-quarter results showed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. Management guides to low-teens revenue growth for fiscal 2026.
Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. Visa has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has an expected revenue and earnings growth rate of 13.4% and 14.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 60 days.
Starbucks Corp.
Zacks Rank #1 Starbucks is benefiting from steady International segment momentum, operational execution and meaningful progress under its “Back to Starbucks” turnaround plan. SBUX’s growth in international markets, along with innovations in delivery and digital channels, added to the positives.
In second-quarter fiscal 2026, SBUX’s International revenues rose 9.9%, while comparable sales increased 2.6% on 2.1% transaction growth. The company emphasizes operational efficiency, coffeehouse portfolio optimization and menu innovation to drive growth. SBUX’s focus on digital loyalty, new product platforms and partnerships bodes well.
Starbucks has an expected revenue and earnings growth rate of 2.9% and 12.7%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 4.3% over the last 60 days.
The Coca-Cola Co.
Zacks Rank #2 Coca-Cola is benefiting from the strength of its portfolio breadth, consistent share gains and improving margins driven by pricing and productivity efforts. Innovation, marketing and digital initiatives are enhancing consumer engagement and execution, while diversified categories reduce risk.
KO projects steady organic revenue and EPS growth, backed by a durable global distribution moat. Our model predicts KO’s organic revenue growth of 4.8% and comparable EPS to grow 8.8% for 2026. KO’s robust cash generation supports reinvestments and sustainable shareholder returns, including continued dividend growth.
Coca-Cola has an expected revenue and earnings growth rate of 3% and 8.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 60 days.
The Estée Lauder Companies Inc.
Zacks Rank #2 Estée Lauder continues to gain traction as its Profit Recovery and Growth Plan supports margin recovery, operational efficiencies and stronger sales visibility. The Beauty Reimagined strategy, digital expansion and portfolio investments are helping EL improve innovation, consumer reach and online engagement, while emerging markets and improving trends in Mainland China provide long-term growth support.
Online sales growth, stronger social commerce momentum and broader distribution across Sephora, Amazon Premium Beauty and TikTok Shop continue to strengthen the company’s omnichannel position, positioning EL for a more sustainable long-term recovery and growth trajectory.
The Estée Lauder Companies has an expected revenue and earnings growth rate of 3.7% and 31.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 3.9% over the last 60 days.