Ariel fund manager on a pick to buy post-Fed and this jumping tech stock to stick with

Heading into a lower interest-rate environment, there is one stock that should be on investors' radar, according to Ariel Investments' Charles Bobrinskoy: Oracle. " Oracle really just needs to be thought of as ..

. the software that helps companies manage their data," the firm's vice chairman and head of investment group told CNBC's " The Exchange " on Thursday, adding that the tech name is his favorite. "They're going to be very well positioned for AI.



AI is all about analyzing your data, and Oracle controls a lot of that data." The stock has surged about 59% this year and has a forward price-to-earnings ratio of about 26.7, per FactSet.

While Bobrinskoy said Oracle used to be "way too cheap," it is currently "getting pretty close to fairly valued." ORCL YTD mountain ORCL, year-to-date He also said auto stocks should be helped by lower interest rates, citing BorgWarner as another name to watch. The producer of different automobile components has been down more than 4% this year and has a forward price-to-earnings ratio of around 8.

3. BWA YTD mountain BWA, year-to-date Bobrinskoy's comments come a day after the Federal Reserve lowered rates by a half percentage point, surprising many investors who expected a smaller quarter-percentage-point reduction. Stocks wavered Wednesday immediately after the announcement.

On Thursday, however, the S & P 500 ripped to record levels. Bobrinskoy now expects there to be a rotation into value stocks given the view that there is a lower risk of a recession. "Value stocks are very cheap," he continued.

"Growth stocks are not.".