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This Week’s Stock Picks & BNN Top Picks Summary: VZ-N, MSFT-Q and 24 Stock Top Picks (Apr 12-18)11 Hot Canadian AI Stocks to Buy (2023)Hawkish Fed pressures stocks, oil weakensThis summary was created by AI, based on 15 opinions in the last 12 months.
CGI Group (GIB.A-T) is a well-managed global IT services and consulting company with a proven track record of organic and inorganic growth. The company has a strong presence in public and private sectors across multiple industries with a focus on long-term, recurring contracts. CGI is benefiting from the trend towards digitization, including AI offerings, and is seen as a quality name with a solid pipeline of government contracts. While some experts note concerns about revenue concentration and macro pressures, overall, the company is viewed as a durable and attractive investment for the long term.
The name companies turn to for offsetting cost pressures and digitizing a business. Wonderful demand drivers, lovely business economics. Generates lots of cash. Valuation around 17x earnings, very robust FCF yield of 6%. Global growth platform. No dividend.
Recent pressure likely due to Fed comments about interest rates. A lot of the higher-growth names pulled sharply back. That's what an investor waits for to enter a name.
No longer owns it. Are better options. See his top picks. The old CEO used to do big acquisitions, so growth isn't as dramatic. Still a great company, and don't sell it.
One of the largest IT services companies in the world. Public and private sectors, many industries. Revenues: US (30%), Canada (15%), Europe (the rest). 70% of revenues from long-term, recurring contracts or from government. Investing in AI offerings. No dividend.
Well run. Proven track record. Grows organically and inorganically. Good rate of return, ROE is twice that of your typical Canadian company. He's OK adding at all-time highs.
It is a fantastic business, well managed, with a very steady ROE and consistent performance. It is his second choice in large cap tech in Canada with Constellation Software being his first choice,
Global IT outsourcing and consulting. Pure service. Really well run. Helped by trends toward digitization, including reducing labour costs. Good at allocating capital. Durable business. 18x earnings. Flexibility to create value by acquisitions, buying back shares, and organic initiatives. GAARP. No dividend.
(Analysts’ price target is $149.49)A fine company. Revenue is growing 11% and EPS 16%. The one issue is 65-70% of their business comes from two sectors--government and financials, and a third comes from the US. They've bought fine companies though. The AI boom will lead to companies needing consulting, which benefits CGI.
Growth rate of 8.6% is fine, trading around 17x 2024 earnings. Quality name. Solid pipeline of government contracts. Macro pressure caused Q3 miss. Near its highs. Likes it longer term, but he'd be selling in a registered account to buy some of the beaten-down names.
They are IT consultants and the company is one of their largest positions. It is always buying back stock or distributing some cash to shareholders. Along with increased margins it is at a good valuation, so a good time to buy. It is globally diversified, growing very well by acquisition, and gives a high return on invested capital.
Pressure for companies to increase efficiency, and this is achieved through digitization. In the sweet spot of IT outsourcing and consulting. Attractive valuation and free cashflow yield. Phenomenal compounder and allocators of capital, so lack of dividend doesn't bother him. No dividend.
(Analysts’ price target is $153.38)Good results, but a cautious tone on the conference call. Possible cutback in IT spending. In the right place at the right time. Riding the AI trend. Not really that expensive. He plans to own it for a long time.
Absolute compounder on organic growth and acquisitions. Benefits from global digitization. Will be at the forefront of taking advantage of AI. Contracts with governments, banks, Fortune 500 companies. No dividend, uses free cash to keep making acquisitions.
Well run. People are trying to combat wage and cost inflation with technology. Global. Robust cashflows. Wait for pullback to add.
Has done well. More of a smaller, niche company. It's a matter of size and how you want to allocate exposure. CSU is his only software company, other than in the US. He likes the US because of the broader diversification to be had.
Initially chose it because it was undervalued compared to peers, saw growth potential organically and through acquisition. Has added verticals and geographic scope. Canada is only 20-30% of revenues, rest is global. Management has disciplined approach to acquisitions. Strong balance sheet. Valuation's increased, deserved due to higher margins. Still cheaper than ACN.
Drawbacks include no dividend and founder-controlled.
CGI Group (A) is a Canadian stock, trading under the symbol GIB.A-T on the Toronto Stock Exchange (GIB.A-CT). It is usually referred to as TSX:GIB.A or GIB.A-T
In the last year, 12 stock analysts published opinions about GIB.A-T. 10 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for CGI Group (A).
CGI Group (A) was recommended as a Top Pick by on . Read the latest stock experts ratings for CGI Group (A).
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
12 stock analysts on Stockchase covered CGI Group (A) In the last year. It is a trending stock that is worth watching.
On 2024-04-26, CGI Group (A) (GIB.A-T) stock closed at a price of $141.695.
Business split between IT services and consulting (55% revenue) and systems integration (45%). Public and private. International revenue -- 30% US, 15% Canada, rest from Europe. Recurring revenues from long-term contracts. Investing to expand AI offerings.
Well run, good track record of operating and acquiring. Impressive allocation of capital. Profitability well above market, strong balance sheet. Small premium to the market, but better quality than market. No dividend, but the growth rate is there. Long-term hold.