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15 handpicked stocks

High-Switching-Cost Traps

These companies provide solutions that become so essential to their customers' operations that leaving is practically impossible. Professional analysts have selected these stocks for their ability to generate reliable revenue thanks to the immense difficulty and expense customers face when considering alternatives.

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Han Tan | Market Analyst

Updated today | Published at June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

ORCL

Oracle Corp.

ORCL

Current price

$248.28

Its database and enterprise software are deeply embedded in corporate IT infrastructure, making migration costly and complex.

SAP

SAP SE

SAP

Current price

$277.85

As a leader in ERP software, its systems manage core business operations, creating significant dependency and high switching costs for large enterpris...

As a leader in ERP software, its systems manage core business operations, creating significant dependency and high switching costs for large enterprises.

IBM

International Business Machines Corp.

IBM

Current price

$239.72

Its mainframe systems and specialized software are integral to the core operations of major financial and governmental institutions.

About This Group of Stocks

1

Our Expert Thinking

When a company's software or services become the backbone of a customer's business, switching providers becomes prohibitively expensive and disruptive. This creates a powerful competitive moat that translates to predictable revenue streams and pricing power—qualities that can deliver sustainable growth over the long term.

2

What You Need to Know

These companies aren't just vendors—they're essential partners whose platforms are mission-critical for daily operations. Their solutions are deeply woven into customer workflows, creating "lock-in" effects that competitors struggle to overcome. This collection features market leaders in enterprise software, infrastructure, and specialized business services.

3

Why These Stocks

Each company in this collection has demonstrated an ability to embed their products deeply within customer operations. The current acceleration of enterprise digital transformation serves as a significant tailwind, as businesses become increasingly dependent on these platforms, strengthening these companies' competitive positions.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+15.87%

Group Performance Snapshot

15.87%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 15.87% over the next year.

12 of 15

Stocks Rated Buy by Analysts

12 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔒

Sticky Revenue Streams

These companies have created business models that practically guarantee repeat business. When customers are "locked in," you can potentially benefit from their reliable, predictable revenue growth.

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Pricing Power Advantage

When switching costs are high, companies can often raise prices without losing customers. This pricing power can be especially valuable during inflationary periods, potentially protecting your investment.

🚀

Digital Transformation Tailwinds

As businesses accelerate their digital initiatives, they become even more dependent on these mission-critical platforms. This trend is strengthening these companies' competitive positions right now.

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