Does Teradata Corporation (TDC) Have a Robust Long-Term Trajectory?

Ariel Investments, an investment management company, released its “Ariel Global Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Ariel Global fund appreciated +7.35% lagging behind the +8.20% gain of its primary benchmark, the MSCI ACWI Index, but ahead of the +6.85% return of its secondary benchmark, the MSCI ACWI Value Index. The upward rally of developed markets continued in the first quarter of 2024. The rally was driven by investors' excitement over artificial intelligence (AI), a rebound in bank lending growth, decreased energy costs, a rise in global manufacturing activity, recent structural reforms in Japan, and the near-term possibility of a rate-cutting cycle in the U.S. and Europe. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Ariel Global Fund highlighted stocks like Teradata Corporation (NYSE:TDC), in the first quarter 2024 investor letter. Teradata Corporation (NYSE:TDC) provides a connected multi-cloud data platform for enterprise analytics. The one-month return of Teradata Corporation (NYSE:TDC) was -0.39%, and its shares lost 35.54% of their value over the last 52 weeks. On June 14, 2024, Teradata Corporation (NYSE:TDC) stock closed at $33.44 per share with a market capitalization of $3.234 billion.

Ariel Global Fund stated the following regarding Teradata Corporation (NYSE:TDC) in its first quarter 2024 investor letter:

"We purchased American software company, Teradata Corporation (NYSE:TDC), which is a provider of business analytic solutions, hybrid cloud products and consulting services. Teradata stands out for its ability to manage and analyze large, complex datasets, with the largest number of concurrent users and lowest cost per query while offering deep analytical insights across various operational data sets. Although the market is focused on near-term setbacks in the company’s transformation to a cloud-based computing model, we believe the Teradata’s technology advantages, updated cloud offerings, and install base provide for a solid long-term trajectory in an important growth area."

An engineer working on a computer monitor, indicating the importance of analytical solutions.

Teradata Corporation (NYSE:TDC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Teradata Corporation (NYSE:TDC) at the end of the first quarter which was 33 in the previous quarter. Teradata Corporation (NYSETDC) reported a first-quarter recurring revenue of $388 million, a 1% year-over-year increase in constant currency. While we acknowledge the potential of Teradata Corporation (NYSE:TDC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Teradata Corporation (NYSE:TDC) and shared Diamond Hill Long-Short Fund's views on the company in the third quarter 2023. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.