10 Best Stocks to Invest in for the Next 5 Years

7. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 124

Oracle Corporation (NYSE:ORCL) is one of the Best Stocks to Invest in for the Next 5 Years. On September 10, Bank of America upgraded Oracle Corporation (NYSE:ORCL)’s stock to “Buy” from “Neutral”, increasing the price target to $368 from $295. This comes after it posted impressive Q1 2026 results. As per the firm, while the visibility on returns from Oracle Corporation (NYSE:ORCL)’s rapidly rising capital expenditures remains limited, the demand signals from Oracle Cloud Infrastructure (OCI) business are too strong.

The analyst also highlighted that although the profitability of AI workloads is a key debate, it remains clear that Oracle Corporation (NYSE:ORCL) continues to capture share in the large and rapidly growing market for AI infrastructure. Oracle Corporation (NYSE:ORCL)’s total remaining performance obligations rose 359% YoY in both USD and constant currency to $455 billion. Furthermore, its total quarterly revenues increased 12% in USD and 11% in constant currency to $14.9 billion. Over the upcoming few months, the company anticipates signing up numerous additional multi-billion-dollar customers, and RPO is expected to exceed half a trillion dollars.

Loomis Sayles, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Oracle Corporation (NYSE:ORCL) is a leader in the enterprise software market with a strong market position in database, infrastructure and application software, and cloud-based software and services. We believe the company’s competitive advantages include its large and experienced direct sales force, a founder-driven management team that reinvests relentlessly to maintain a leading intellectual property (IP) portfolio and differentiated product suite, and a large installed base of clients with high switching costs where it consistently achieves renewal and retention rates in the mid-90% range. We believe Oracle is well positioned to benefit from the continuing growth in data storage and enterprise application software, as well as the shift to cloud-based solutions.

A long-term fund holding, Oracle reported strong quarterly financial results that were above management guidance and consensus expectations on most measures, including remaining performance obligation (RPO) bookings, a forward-looking measure of revenue. As a result, the company expects revenue growth to accelerate and raised its guidance to at least 16% revenue growth in its 2026 fiscal year, driven by cloud growth in excess of 40%. Oracle is the world leader in its largest business segment, enterprise database software used in customer on-premise IT environments. However, the company continues to focus on transitioning its business from a traditional on-premise, up-front software licensing and maintenance revenue model to a cloud computing subscription-based model where software revenue is recognized over the life of the client’s contract. While there has been pressure on year-over-year overall revenue comparisons during this transition, which started over a decade ago as Oracle released cloud versions of its applications and infrastructure software, as up-front license revenue shifts to subscription revenue, we have long expected this to lead to faster growth over time due to a higher customer lifetime value as the transition progresses. We believe the cloud model also allows Oracle to monetize its services and technology more efficiently and yield savings to the customer… (Click here to read the full text)