In today’s fast-changing and highly competitive business environment, companies with strong economic moats can represent opportunities for long-term investment success. These businesses possess enduring competitive advantages—including powerful network effects, high customer switching costs, operational efficiencies, or unique intellectual property—that shield their market position and profitability from competitive threats. Because of these structural benefits, companies with solid moats consistently deliver higher returns on invested capital over time, enabling them to reinvest profits effectively and build shareholder value even during economic downturns or increased competition.
Validea’s moat identification models use time-tested investment approaches developed by master investors who excelled at spotting lasting competitive advantages. These frameworks evaluate key factors such as sustained high returns on capital, pricing power, brand strength, and market dominance to identify companies with truly defensible business positions. This systematic, evidence-based approach filters out businesses with short-lived competitive benefits and focuses on companies built for long-term success, making them ideal choices for investors seeking quality, stability, and sustained performance.
Economic moats become especially valuable during market uncertainty and technological change, when many companies find it difficult to maintain their competitive position. The strongest moat companies often benefit from multiple, interconnected protective advantages—a technology company might combine network effects with high switching costs and exclusive data assets. This layered defense not only protects market share during challenging periods but can actually strengthen their competitive position as weaker rivals exit the market or reduce their investments, allowing moat-protected companies to expand their reach and build even stronger defenses.
Discover how Validea’s models can help you identify high-quality, long-term investments, even in changing market conditions. Visit Validea.com to access in-depth stock analysis and tools designed to emulate proven investment principles. Take a Free Trial Today!
Here are our top wide moat stocks for July of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Return on Equity | Return on Capital |
|---|---|---|---|---|---|---|---|---|---|---|
| TSCO | TRACTOR SUPPLY CO | $59.33 | $31,457 | 29.2 | 2.1 | 70 | 12.6 | 20.1 | 45.3% | 20.1% |
| GWW | WW GRAINGER INC | $1,054.02 | $50,634 | 26.9 | 2.9 | 67 | 14.6 | 22.7 | 57.2% | 44.0% |
| LRCX | LAM RESEARCH CORP | $96.96 | $124,023 | 27.0 | 7.2 | 66 | 13.1 | 24.6 | 53.1% | 41.3% |
| AMAT | APPLIED MATERIALS INC | $185.69 | $149,016 | 22.6 | 5.3 | 46 | 7.9 | 20.8 | 36.4% | 38.9% |
| NVO | NOVO NORDISK A/S (ADR) | $71.70 | $241,230 | 19.4 | 5.1 | 23 | 11.1 | 12.9 | 88.1% | 105.8% |
| CPRT | COPART INC | $46.69 | $45,146 | 30.9 | 9.8 | 46 | 5.1 | 26.7 | 18.5% | 19.5% |
| TSM | TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR) | $245.60 | $1,010,270 | 25.7 | 8.8 | 86 | 8.2 | 13.8 | 34.9% | 29.4% |
| AAPL | APPLE INC | $213.88 | $3,194,475 | 30.2 | 8.0 | 52 | 47.8 | 26.8 | 152.6% | 68.2% |
| RMD | RESMED INC | $275.16 | $40,346 | 30.9 | 8.0 | 79 | 7.3 | 26.5 | 25.8% | 48.7% |
| INFY | INFOSYS LTD (ADR) | $17.37 | $72,743 | 22.9 | 3.8 | 36 | 6.6 | 19.6 | 30.6% | 40.8% |
Further Research
