As we enter a low interest rate environment, there is one stock that should be on investors’ radar, according to Ariel Investments’ Charles Bobrinskoy: Oracle. “Oracle just needs to be thought of as … software that helps companies manage their data,” the company’s vice chairman and head of the investment group told CNBC’s “The Exchange” on Thursday, adding that the technology term is his favorite. “They’re going to be very well positioned for AI. AI is about analyzing your data, and Oracle manages a lot of that data.” The stock is up about 59% this year and has a forward price-earnings ratio of about 26.7, per FactSet. While Bobrinskoy says Oracle used to be “very cheap,” it’s currently “closer to being well-informed.” ORCL YTD mountain ORCL, year to date He also said auto stocks should be helped by low interest rates, citing BorgWarner as another name to watch. The auto parts maker is down more than 4% this year and has a forward price ratio of 8.3. BWA YTD mountain BWA, Bobrinskoy’s year-to-date comments come a day after the Federal Reserve cut rates by half a percent, surprising many investors who expected a smaller quarter-point cut. Stocks were volatile on Wednesday immediately after the announcement. On Thursday, however, the S & P 500 tore to record levels. Now Bobrinskoy expects there to be some volatility in the stock price given the view that there is a low risk of recession. “The shares are very cheap,” he continued. “Growth stocks don’t exist.”
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