3 Stocks With Monopoly Power—and Minimal Competition
The word "monopoly" has a negative reputation in the investment and economic communities, as it is often linked to abusive pricing and unfair advantages that many other businesses and investors might not face. However, monopolies (or near-monopolies for that matter) can also mean outsized returns for investors who can spot them.
And the truth is that these near-monopolies are everywhere in the market. However, they lie low enough to avoid the inevitably negative media coverage that could come if they were to be identified for what they are. With this in mind, today’s list of near-monopoly stocks can offer investors much-needed upside during an uncertain economic and financial cycle for the United States.
Fitting the description, names like Copart Inc. (NASDAQ: CPRT), ASML Holding (NASDAQ: ASML), and Fair Isaac Corporation (NYSE: FICO) are examples. These names hold enough market share in their respective spaces, such as the technology sector, and trade at enough of a discount that they just can’t be ignored today. This opportunity is likely a closing window, as big institutions are likely already circling around the buy button for these businesses.
An Inevitable Part of the Auto Market
Accidents happen; every investor understands this. What they don’t realize is what happens to most vehicles after accidents. Usually, a company like Copart buys the damaged vehicles (considered a total loss) from insurance companies, repairs them at cost, and then sells them at a profit at auctions.
This is a quiet area of the economy. Still, it is a hot one, and Copart brings in $4.7 billion in net revenue from it through owning roughly 40% of the entire space. This market share moat, brand penetration, and logistics capability keep Copart as a name that could be considered a near monopoly in its own field.
Given that this powerful name now trades at 71% of its 52-week high, investors can assume that the downside risk is largely priced in for Copart, leaving it with little choice but to start heading higher and reflect its true fundamentals.
This setup might explain why Motley Fool Asset Management, a known stock picker in the financial community, decided to buy up to $2.4 million worth of Copart stock as of August 2025, providing a vote of confidence in the price recovery that’s pending for this company in the future.
Institutions Like ASML’s Market Positioning
The same line of thought can spill over onto ASML stock, considering it is one of the leading lithography technology companies, providing the necessary equipment for the chipmaking and semiconductor stocks that have helped the S&P 500 index run as high as it has today.
There is very little competition in this space, since lithography is well-patented and kept as a hidden treasure to ensure ASML’s positioning in the industry is left unchecked, a true near monopoly if there ever was one. Given the industry's recent surge, ASML’s price of only 73% of its 52-week high may have triggered some systemic buying on Wall Street.
As of early August 2025, institutional allocators from Envestnet Asset Management decided to kick their quarterly activity up a notch, as they justified buying an additional 0.7% in ASML stock for their current holdings. While this may not seem like much in percentage terms, it did bring their entire position to a high of $347.5 million, making them the largest institutional holder in ASML stock today.
A Company Rooted in Daily Life
Every American knows the importance of having a good credit history, which essentially comes along with a sound credit score. A single entity runs this system across the nation’s banking and lending system: Fair Isaac Corporation.
Without credit scores, homes, cars, or credit cards wouldn't be issued at the volumes they are and have been for decades. This unique positioning, along with governmental and regulatory moats, makes the stock a feared opponent for anyone willing to go short into it for the long term.
While the bears have enjoyed a recent win now that the stock trades at only 57% of its 52-week high, that run may soon come to an end. Wall Street analysts see the stock’s fair value at $2,163 per share. In their consensus price target, they are shooting for a net rally of 56.4% from the current trading level.
This much upside potential, and the fact that there is really no reason for the stock to be trading this low, has driven the market to place a valuation premium of 54.1x price-to-earnings (P/E) on the stock, compared to the services industry average of only 38x today.
While some may argue this only makes the stock prone to further declines, seasoned participants know that the market is always willing to put a premium on names that it believes can outperform the peer group and the broader market. Fair Isaac’s positioning may justify that belief.
Learn more about ASML
