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Investor Insights

This summary was created by AI, based on 16 opinions in the last 12 months.

CGI Group (A) is a well-managed and durable global IT outsourcing and consulting company with a strong focus on digitization and reducing labor costs. While some experts are cautious about its heavy dependence on government and financial sectors, others see it benefiting from the AI boom and its solid pipeline of government contracts. The company is praised for its smart capital allocation, consistent performance, and strong growth in revenue and earnings per share. Overall, it is seen as a solid, long-term investment with potential for value creation through acquisitions, share buybacks, and organic initiatives.

Consensus
Positive
Valuation
Fair Value
BUY
CGI Group (A)

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,

consulting
TOP PICK
CGI Group (A)

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)
consulting
BUY
CGI Group (A)

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.

consulting
SELL
CGI Group (A)

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.

consulting
BUY
CGI Group (A)

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.

consulting
TOP PICK
CGI Group (A)

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)
consulting
HOLD
CGI Group (A)

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.

consulting
BUY
CGI Group (A)

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.

consulting
PAST TOP PICK
CGI Group (A)
(A Top Pick Jun 15/22, Up 43%)

Well run. People are trying to combat wage and cost inflation with technology. Global. Robust cashflows. Wait for pullback to add.

consulting
COMMENT
CGI Group (A)

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.

consulting
WEAK BUY
CGI Group (A)

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.

consulting
BUY ON WEAKNESS
CGI Group (A)

Very well run. Very strong as of late. 3-year earnings growth is quite strong. Driven by trend to digitization. With increased labour costs, pressure on companies to use technology. Wonderful business. Valuation is above his buy price, add on a pullback.

consulting
BUY ON WEAKNESS
CGI Group (A)

Has long owned this defensive tech name. Shares are catching up after Covid. Outsourcing and consulting are their businesses. The former is doing very well; targeting 70% of revenues in this business. Consulting amounts to helping businesses digitize and cybersecurity; growing well too. The PE is higher now, but compared to Accenture is a discount. Don't chase it. Pays no dividend.

consulting
BUY
CGI Group (A)

Great business over a long time. Likes its large cap nature right now. Very liquid. Strong underlying business, still hiring, valuation still very reasonable given its stability. Benefits from outsourcing. Deserves a higher multiple.

consulting
BUY ON WEAKNESS
CGI Group (A)

Has owned this since 2010 at $15. Are very global. Have grown through discipline acquisitions in Europe and US. Their backlog continues to grow as more companies digitize and want cybersecurity, willing to outsource their back office. The PE has risen in recent years, so buy on pullbacks.

consulting
Showing 1 to 15 of 577 entries

CGI Group (A)(GIB.A-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 11

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 13

Stockchase rating for CGI Group (A) is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

CGI Group (A)(GIB.A-T) Frequently Asked Questions

What is CGI Group (A) stock symbol?

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

Is CGI Group (A) a buy or a sell?

In the last year, 13 stock analysts published opinions about GIB.A-T. 11 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).

Is CGI Group (A) a good investment or a top pick?

CGI Group (A) was recommended as a Top Pick by on . Read the latest stock experts ratings for CGI Group (A).

Why is CGI Group (A) stock dropping?

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.

Is CGI Group (A) worth watching?

13 stock analysts on Stockchase covered CGI Group (A) In the last year. It is a trending stock that is worth watching.

What is CGI Group (A) stock price?

On 2024-02-23, CGI Group (A) (GIB.A-T) stock closed at a price of $156.95.