When it comes to evaluating companies for their suitability as investments, no single factor should be more important for long-term investors than their sustainable competitive advantages -- otherwise known as moats. A wide moat is the compounding force that helps some companies (and their stocks) keep growing for decades, while the competition continually comes up short.
Each of the two companies I'll discuss below -- Shopify (NYSE:SHOP) and Atlassian (NASDAQ:TEAM) -- has a powerful moat already, but is rapidly adding another. This is setting them up for long-term dominance in their respective spaces that could last for a very long time.
The wider the moat, the better the investment. Image source: Getty Images
What, exactly, is a moat?Generally, moats come in four forms:
Hot Dividend Stocks To Own Right Now: Arca Biopharma Inc.(ABIO)
ARCA biopharma, Inc., a biopharmaceutical company, engages in the development of genetically-targeted therapies for cardiovascular diseases. Its principal product candidate, Gencaro (bucindolol hydrochloride), is an investigational, pharmacologically unique beta-blocker and mild vasodilator being developed for the treatment of chronic heart failure and also for the prevention of atrial fibrillation in patients with heart failure. The company has identified common genetic variations in the cardiovascular system that it believes interact with Gencaro?s pharmacology and may predict patient response. ARCA has collaboration with Laboratory Corporation of America to develop the Gencaro Test, a companion test for the genetic markers that identify these common genetic variations. The company is headquartered in Broomfield, Colorado.
Advisors' Opinion:- [By Paul Ausick]
ARCA biopharma Inc. (NASDAQ: ABIO) traded down nearly 80% Monday and posted a new 52-week low of $0.45 after closing Friday at $1.60. The stock’s 52-week high is $2.76. Volume was around 9 million, nearly 40 times the daily average of around 230,000. The company reported a poor result on a phase 2 trial of treatment for a certain kind of heart problem.
Hot Dividend Stocks To Own Right Now: Liberty Expedia Holdings, Inc. (LEXEA)
Liberty Expedia Holdings, Inc. is a holding company. The Company holds interests in Expedia, Inc. (Expedia) and Bodybuilding.com, LLC (Bodybuilding). The Company's segments include Bodybuilding and Expedia. Bodybuilding is an Internet retailer of sports, fitness and nutritional supplements. Expedia provides travel and services to leisure and corporate travelers in the United States and abroad, as well as various media and advertising offerings to travel and non-travel advertisers. Bodybuilding hosts an online health-and-fitness publication, offering free fitness content, workout programs, video trainers, recipes, health advice and motivational stories. Expedia has a portfolio of travel brands, including its subsidiaries, which feature a supply portfolio. As of September 30, 2016, its portfolio included over 321,000 properties in approximately 200 countries, 475 airlines, packages, rental cars and cruises, as well as destination services and activities. Advisors' Opinion:- [By Max Byerly]
ValuEngine upgraded shares of Liberty Expedia Holdings Inc Series A (NASDAQ:LEXEA) from a hold rating to a buy rating in a research note released on Saturday, ValuEngine reports.
- [By Joseph Griffin]
Tyers Asset Management LLC reduced its holdings in shares of Liberty Expedia Holdings Inc Series A (NASDAQ:LEXEA) by 54.9% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,192 shares of the technology company’s stock after selling 3,892 shares during the quarter. Tyers Asset Management LLC’s holdings in Liberty Expedia Holdings Inc Series A were worth $140,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Hot Dividend Stocks To Own Right Now: International Speedway Corporation(ISCA)
International Speedway Corporation, together with its subsidiaries, promotes motorsports themed entertainment activities in the United States. Its motorsports themed event operations consist principally of racing events at its motorsports entertainment facilities, which promote approximately 100 stock car, open wheel, sports car, truck, motorcycle, and other racing events. The company is also involved in souvenir merchandising operations; food and beverage concession operations; the provision of catering services in suites and chalets; and the creation of motorsports-related programming content carried on radio stations, as well as Sirius XM Radio, a national satellite radio service. In addition, it uses its motorsports entertainment facilities for testing for teams, driving schools, riding experiences, car shows, auto fairs, concerts, and music festivals, as well as settings for television commercials, print advertisements, and motion pictures; and rents 'show cars' for promotional events. The company owns and/or operates 13 motorsports entertainment facilities with approximately 763,500 grandstand seats and 548 suites. The company was formerly known as Daytona International Speedway Corporation and changed its name to International Speedway Corporation in 1968. International Speedway Corporation was founded in 1953 and is headquartered in Daytona Beach, Florida.
5G Revolution: This breakthrough technology is expected to unleash $12 TRILLION in new wealth… and one $6 stock could be better positioned than any other to skyrocket. Learn more. It's the greatest breakthrough in history. It can usher in an incredible new world, potentially minting millionaires by the bucketload! ISCA has been the topic of several recent research reports. Zacks Investment Research downgraded International Speedway from a “hold” rating to a “sell” rating in a research report on Wednesday, December 19th. BidaskClub downgraded International Speedway from a “hold” rating to a “sell” rating in a research report on Thursday, January 10th. Finally, ValuEngine upgraded International Speedway from a “hold” rating to a “buy” rating in a research report on Saturday, December 15th. Three research analysts have rated the stock with a sell rating and two have assigned a hold rating to the company. International Speedway has an average rating of “Sell” and an average price target of $26.00. International Speedway Company Profile Wall Street moved lower on Thursday, with the Dow Jones Industrial Average suffering a 201-point decline. Stocks took their cues from the bond market, where bond prices dropped sharply in response to extremely strong U.S. economic data. For years, the economic expansion has given bond investors a Goldilocks scenario, in which growth was solid but not so sharp as to cause negative side effects, such as inflation. Now, stronger signals could force the Federal Reserve to raise interest rates more aggressively than previously thought, and that could hurt the markets. Several individual companies also suffered from bad news that sent their shares lower. Mallinckrodt (NYSE:MNK), International Speedway (NASDAQ:ISCA), and LGI Homes (NASDAQ:LGIH) were among the worst performers on the day. Here's why they did so poorly. International Speedway Corporation (NASDAQ:ISCA)Q3 2018 Earnings Conference CallOct. 4, 2018, 9:00 a.m. ET Operator
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