Reasons for the Outperformance of Oracle Corporation (ORCL) in Q2 - InvestingChannel

Reasons for the Outperformance of Oracle Corporation (ORCL) in Q2

Janus Henderson Investors, an investment management company, released its “Janus Henderson Contrarian Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -1.92% in the second quarter, compared to the S&P 500® Index’s 4.28% return.  Along with an accommodative monetary policy, the profits forecast for companies other than the mega-cap tech giants is improving and may act as a catalyst to expand market returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Janus Henderson Contrarian 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 19.84%, and its shares gained 58.23% of their value over the last 52 weeks. On September 23, 2024, Oracle Corporation (NYSE:ORCL) stock closed at $165.95 per share with a market capitalization of $459.842 billion.

Janus Henderson Contrarian Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2024 investor letter:

“Enterprise software company Oracle Corporation (NYSE:ORCL) was a top contributor to relative performance. The company reported revenue and bottom line metrics that were in line to slightly below consensus; however, it also reported record bookings for new business. This accelerating revenue growth outlook is being driven by AI cloud infrastructure deals and boosted sentiment in the stock.”

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) reported a $13.3 billion in revenues in the fiscal first quarter of 2025, up 8% from last year. 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 the list of AI stocks Wall Street is talking about. 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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