10 Best S&P 500 Stocks With Highest Upside Potential

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1. Oracle Corp (NYSE:ORCL)

Number of Hedge Fund Holders: 122

Stock’s Upside Potential: 84.28%

Oracle Corp (NYSE:ORCL) is among the best S&P 500 stocks with highest upside potential. The company has won a contract to help the Centers for Medicare & Medicaid Services (CMS) modernize its systems. This deal was announced on February 11, and it involves provision of cloud services to support the federal health agency’s mission-critical systems.

Specifically, Oracle Corp (NYSE:ORCL) will consolidate and migrate certain CMS on-premise workloads to the cloud. Oracle will deliver this contract through its Oracle Cloud Infrastructure arm, enabling CMS to leverage a platform that meets stringent security and compliance requirements.

In another federal deal, Oracle announced on February 12 that the US Air Force had picked it for an $88 million contract to provide cloud services. Oracle noted that this deal extends its role as a key partner in Pentagon’s cloud modernization efforts.

On February 15, DA Davidson upgraded Oracle to Buy from Neutral with a $180 target, saying worries about its OpenAI ties are easing. Analyst Gil Luria believes OpenAI is stabilizing with fresh funding, which should support Oracle’s data center work. He noted the market has overreacted, weighing on Oracle, Nvidia, and Microsoft, but sees fundraising as a catalyst for Oracle’s stock. Luria also pointed to strength in Oracle’s core software and new opportunities like TikTok USA, though he cautioned that heavy debt and lease commitments remain a challenge.

Oracle Corp (NYSE:ORCL) is an American multinational IT company. It offers a wide range of enterprise-oriented products and services, including database management systems and cloud infrastructure. Founded in 1977, Oracle is headquartered in Santa Clara, California.

While we acknowledge the potential of Oracle Corp (NYSE:ORCL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best NYSE Stocks to Buy for the Long Term and 10 Best Medical Technology Stocks to Invest In.

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