Buy, Sell or Hold: CGI Group (A) (GIB.A-T) — Stock Predictions at Stockchase

TSE:GIB.A

102.41

0.28 (0.27%) 1d

Showing 1 to 15 of 554 entries

TOP PICK

Shareholder friendly. Front and centre with outsourcing and consulting as more companies go digital. Wind at its back. Strong acquisitions and in buybacks. Attractive valuation at 16x earnings and free cashflow yield of more than 7%. Defensive in a tough market. No dividend. (Analysts’ price target is $122.57)

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COMMENT

Has owned this many years. It lagged the tech sector last year, but it was a tech defensive stock and have reported good results two weeks ago with 8% organic growth. Companies are investing in digitizing their companies, so CGI will benefit. CGI does acquisitions based on a strong balance sheet, and they grow organically. Doesn't pay a dividend.

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BUY

In the space he likes CGI, with an attractive global platform, free cashflow yield of 6%, and a mix of government and private enterprise contracts.

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DON'T BUY

Its PE is higher than peers and he expects headwinds in this sector. Growth forecasts for North America and Europe are dimming as economists expect higher rates. He wouldn't own this.

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TOP PICK

Steady, consistent grower. Largest IT services company in Canada. Big footprint. Big presence in US. Growth by acquisition. Organic growth is modest, but accelerating. Underleveraged balance sheet. Hunting for a larger transformational deal. Earnings compounded 9% over last 5-6 years, expects the same in 2022. Trades at 18x earnings, undemanding. No dividend. (Analysts’ price target is $126.63)

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PAST TOP PICK

(A Top Pick Feb 26/20, Up 13%) He likes their business, though wouldn't add to it now. His buy price is $105. It has a global platform. They can buy back shares or companies. Organic growth had lagged, but in the last quarter picked up, given the backlog of work.

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PAST TOP PICK

(A Top Pick Sep 10/20, Up 27%) IT service provider with business solution company. Strong management team, diversified geographically and has good governance. Good government spending will bring them business. Buying back shares consistently.

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BUY

It is a little large a capitalization for him but otherwise he would be a buyer. Very high quality tech name with return on equity in the high teens. He would have no problem with someone owning this in their portfolio. He has nothing negative to say about it.

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PAST TOP PICK

(A Top Pick Jun 24/20, Up 32%) Impacted by Covid. Bookings are starting to ramp up. Still value at this price point.

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PAST TOP PICK

(A Top Pick Jul 08/20, Up 27%) He still likes it. A super compounder. Revenue came off a little due to Covid, so growth has lagged peers, but recent quarterly numbers shows growth started to pick up, due to a backlog in bookings. Cash flow remains very strong, so they can buyback shares or complete acquisitions. Likes the valuation.

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PAST TOP PICK

(A Top Pick Apr 09/20, Up 26%) It is not as racy as a SHOP-T. It is a large outsourcing firm. They have a great client base and are a great consolidator. They are always undervalued, caused by the organic growth being mid-single digits. The total growth is good. He is comfortable buying it here.

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PAST TOP PICK

(A Top Pick Jan 09/20, Down 15%) She would buy this one again. The fundamentals continue to do well even though the stock does nothing. The multiple is very cheap and there is a lot of cash flow and momentum in the business. There is a lot of good things happening in this stock.

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PAST TOP PICK

(A Top Pick Feb 13/20, Down 4%) Still likes it and holds it for client portfolios. Continues to buy at these levels. Covid impacted the consulting side. They are starting to see more bookings recently. Companies need to digitize and increase cybersecurity, services CGI offers. Strong balance sheet and well-positioned for acquisitions.

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DON'T BUY

Very competitive in IT infrastructure. He follows it carefully. Bookings have increased, but conversions have slowed. He prefers other players like Infosys, EPAM, and especially Accenture.

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STRONG BUY

#1 performing stock on the TSX over 3 decades. Generates high returns on invested capital. Consulting is a great business because it's capital light. Keeps increasing shareholder wealth over the long term. Exactly the kind of company he likes. Chart is consistently up and to the right.

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Showing 1 to 15 of 554 entries

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

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 6

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 7

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, 7 stock analysts published opinions about GIB.A-T. 6 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?

7 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 2022-06-29, CGI Group (A) (GIB.A-T) stock closed at a price of $102.41.

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