3 High-Moat Stocks to Own in 2026 for Sustained Growth

In an investment landscape increasingly defined by volatility and shifting macroeconomic dynamics, the convergence of value and growth has emerged as a compelling strategy for long-term wealth creation. High-moat stocks-those with durable competitive advantages and robust financial fundamentals-stand out as prime candidates for 2026. This analysis highlights three such companies: Costco Wholesale (COST), Microsoft (MSFT), and Adobe (ADBE). Each combines a wide economic moat, strong growth trajectories, and attractive valuations, making them strategic buys for investors seeking sustained returns.

Costco: A Retail Powerhouse with a Resilient Membership Model

Costco's membership-based retail model has long been a cornerstone of its competitive advantage. Despite a slowdown in 2025 U.S. sales growth, the company maintains a wide economic moat, driven by its ability to offer low prices, exclusive products, and a loyal customer base. According to Morningstar analysis, analysts project a 7.9% year-on-year revenue growth for the upcoming quarter, with a five-year compound annual growth rate (CAGR) of 7.6% expected through 2028. This growth is underpinned by expanding same-store sales, new store openings, and rising membership income.

Costco's valuation also appears compelling. While its stock turned negative in 2025 due to decelerating sales trends, its durable moat and consistent cash flow generation suggest undervaluation. Morningstar analysts emphasize that Costco's retail dominance and non-discretionary spending focus position it to weather macroeconomic headwinds. For 2026, the company's operating margins are projected to expand to 4.2%, further enhancing its appeal.

Microsoft: Leading the AI-Driven Cloud Revolution

Microsoft's dominance in cloud computing and artificial intelligence (AI) cements its status as a high-moat stock. The company's Q1 2026 results revealed an 18% year-over-year revenue surge to $77.7 billion, with Azure's revenue growing 40% year-on-year. This outperformance is fueled by surging demand for AI-enabled cloud services, with Azure's commercial bookings rising 112% and remaining performance obligations (RPOs) increasing 51% to $392 billion.

Analysts highlight Microsoft's strategic positioning in the AI era. The company's wide economic moat, strong margins, and discounted valuation relative to fair value make it a standout. For 2026, expectations for Azure's growth remain robust, with Bernstein and Raymond James analysts forecasting continued momentum. Additionally, Microsoft's AI-driven offerings, such as Microsoft 365 Copilot, are expected to drive incremental revenue streams. Despite capital-intensive AI infrastructure investments, the company generated $10.7 billion in free cash flow in Q1 2026, returning value to shareholders through dividends and buybacks.

Adobe: Monetizing AI in the Digital Experience Era

Adobe's transition from a software licensing model to a subscription-based platform has unlocked significant growth potential. The company's wide economic moat is reinforced by its leadership in digital media and experience solutions. Analysts project 8.9% year-on-year revenue growth for Adobe's upcoming quarter, with a five-year CAGR of 10% expected. This growth is driven by its digital media segment, which is forecast to contribute $4.54 billion in revenue-a 9.6% increase year-on-year.

Adobe's AI integration, particularly through tools like Firefly, is a key differentiator. While investor caution persists over consistent AI monetization, the company's valuation appears attractive. Trading at a 12x estimated free cash flow for 2027, Adobe offers a compelling entry point for investors willing to capitalize on its long-term AI-driven growth. Morningstar analysts project a 10% CAGR in revenue over the next five years, supported by expanding digital experience offerings.

Conclusion: Strategic Buys for Value and Growth Convergence

Costco, Microsoft, and Adobe exemplify the value-growth convergence strategy. Costco's membership model and retail dominance, Microsoft's AI-driven cloud leadership, and Adobe's AI-integrated digital solutions all reflect durable competitive advantages. With Morningstar's economic moat ratings affirming their long-term resilience, and analyst forecasts underscoring robust growth trajectories, these stocks are well-positioned to deliver sustained returns in 2026. For investors seeking a balance of undervaluation and growth potential, these three companies represent a compelling portfolio addition.