Sunday, December 22, 2024

Is Oracle Corp (ORCL) Poised for Strong Growth?

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Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index experienced 4.3% gains during the second quarter, but the benchmark index’s 15.3% gain at the end of the first half was remarkable. The S&P 500 Index’s record highs in the first half of the year were driven by the extraordinary performance of technology stocks, which were propelled by the artificial intelligence (AI) trend and advancements toward the point at which the U.S. Federal Reserve (Fed) could begin lowering interest rates. However, there was still a problem with market breadth, with the eight top-performing equities accounting for about 70% of all returns. The strongest sectors by far were communication services and information technology, with the majority of other sectors trading more or less flat. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Carillon Eagle Growth & Income Fund highlighted stocks like Oracle Corporation (NYSE:ORCL), in the second quarter 2024 investor letter. Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was 6.01%, and its shares gained 16.84% of their value over the last 52 weeks. On August 30, 2024, Oracle Corporation (NYSE:ORCL) stock closed at $141.29 per share with a market capitalization of $389.375 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2024 investor letter:

“Oracle Corporation (NYSE:ORCL) stock rose to all-time highs after the company announced better than expected cloud infrastructure revenue. Oracle signed dozens of new customers, including two leaders in generative artificial intelligence. The backlog remains, and strong growth appears poised to accelerate.”

A team of IT professionals meticulously crafting a large-scale enterprise performance management system.

Oracle Corporation (NYSE:ORCL) ranks 27th in our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the second quarter which was 96 in the previous quarter. Oracle Corporation (NYSE:ORCL) achieved a 6% growth in full fiscal year revenue, reaching $53 billion. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Oracle Corporation (NYSE:ORCL) and shared best AI stocks to buy according to Carolina Panthers Owner Billionaire David Tepper. The stock was the top contributor to Ariel Focus Fund’s performance during Q2 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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