Eight analysts are forecasting a rise in EPS for this outsourcing company.
CGI Group (GIB-A.TO)
From The Successful Investor
CGI Group Inc. (GIB-A.TO; Aggressive Growth Portfolio, TSINetwork Rating: Extra Risk) is Canada’s largest provider of computer-outsourcing services. It helps its clients automate routine functions such as accounting and buying supplies. That makes those companies more efficient and lets them focus on their main businesses.
The U.S. Agency for International Development (USAID) recently selected CGI to help it transfer its computing needs away from traditional servers to a cloud-based platform, accessed using the Internet. That will let USAID greatly cut the costs of maintaining its data centers.
The five-year deal is for $68.2 million U.S. That’s small next to CGI’s annual revenue of $10.7 billion (Canadian). However, contracts like this enhance the company’s strong reputation and helps it attract more government clients.
CGI Group is our top Aggressive buy for 2017.
Patrick McKeough, The Successful Investor, www.tsinetwork.ca, 888-292- 0296, November 2017