- These companies all have competitive moats
- Pricing power protects dollar value of sales
In a busy and rather choppy third-quarter earnings season on Wall Street there is a lot of noise and it’s not always easy to discern winners; so we drill into three stocks that might have the financial health, recession resilience and competitive moats that can give them a source of competitive advantage in the early stage of the next economic cycle.
CME Group (US:CME) - boasting the largest derivatives exchange in the US, CME Group has strong cash generation and a unique position in the marketplace.
Kraft Heinz (US:KHC) - as the economy stagnates and people tighten their belts the risk of consumers switching to cheaper supermarket own brands is a factor, but Kraft Heinz may be on the right side of the aisle on this one.
Gilead Sciences (US:GILD) - Covid-19 was a boon for its Remdesivir antiviral, but the pharma giant has a strong stable of pedigree oncology and HIV drugs that should stand it in good stead.
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