5 Best Stocks for Long-Term Growth

4. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Holders: 69

Oracle Corporation (NASDAQ:ORCL) has long-term growth potential due to its position in the enterprise software industry and is one of the best long-term stocks to buy now. The company’s relational database management system is used by companies like Netflix Inc. (NASDAQ:NFLX) and Microsoft Corporation (NASDAQ:MSFT) and as businesses adopt digital solutions, Oracle Corporation (NASDAQ:ORCL) is expected to capture further market share. As of October 6, Oracle Corporation (NASDAQ:ORCL) has a market cap of $176 billion.

On September 12, Oracle Corporation (NASDAQ:ORCL) reported earnings for the first quarter of fiscal 2023. The company’s revenue grew by 17.65% year over year and amounted to $11.45 billion. The company’s strong cloud revenue turned Wall Street analysts bullish on the stock. On September 13, JPMorgan analyst Mark Murphy raised his price target on Oracle Corporation (NASDAQ:ORCL) to $84 from $82 and reiterated an Overweight rating on the shares. The analyst noted that the company’s “resilient, sticky, and largely recurring revenue stream positions the company well to relatively outperform in a post-pandemic environment.”

At the end of Q2 2022, 69 hedge funds held stakes in Oracle Corporation (NASDAQ:ORCL). This is compared to 61 positions in the first quarter of 2022. As of June 30, First Eagle Investment Management owns over 25.9 million shares of Oracle Corporation (NASDAQ:ORCL) and is the most prominent investor in the company.

First Eagle Investments mentioned several stocks in its second-quarter 2022 investor letter, one of which was Oracle Corporation (NASDAQ:ORCL). Here is what the firm had to say:

“Oracle is one of the world’s largest independent enterprise software companies and has been reinventing itself for the cloud-computing environment, a transition pursued primarily through investments in organic research and design and smallish, well-priced acquisitions. That said, Oracle in June closed its largest-ever deal with the acquisition of Cerner, a designer of software to store and analyze medical records and other healthcare data.

Oracle took on additional debt to finance this all-cash acquisition and as a result plans to moderate its stock-buyback program to focus on debt reduction. Despite the weak quarter for the stock, Oracle’s operations remain strong; it reported better- than-expected results for its most recent quarter and issued upbeat guidance for the coming fiscal year.”