Stock of the Day

CGI (GIB)

$107.90

+$0.25 (+0.2%)

Market Cap: $24.46B

About CGI

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions.

The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services. It serves clients operating in government, banking and capital market, health, utility, communication and media, oil and gas, space, manufacturing, insurance, life sciences, retail and consumer service, and transportation and logistics sectors. The company operates in Canada, France, Spain, Portugal, the United States, Germany, Sweden, Norway, the United Kingdom, Australia, Finland, Poland, Baltics, the Netherlands, Denmark, Czech Republic, India, the Philippines, Asia Pacific, and internationally. Western and Southern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; and the Asia Pacific. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.

CGI Bull Case

Here are some ways that investors could benefit from investing in CGI Inc.:

• CGI Inc. has recently seen significant institutional investment, with over 66% of its stock owned by institutional investors and hedge funds, indicating strong confidence in the company's future performance.
• The stock price is currently around $108, which is near its 52-week high of $122.79, suggesting potential for growth as it approaches previous highs.
• Analysts have a consensus rating of "Buy" for CGI Inc., with an average price target of approximately $156.75, indicating expected appreciation in stock value.
• Royal Bank of Canada has reaffirmed an "outperform" rating with a price target of $192, reflecting optimism about CGI's growth prospects and market position.
• CGI Inc. has demonstrated resilience in its financial performance, with a solid debt-to-equity ratio of 0.28, indicating a manageable level of debt relative to its equity, which is favorable for investors.

CGI Bear Case

Investors should be bearish about investing in CGI Inc. for these reasons:

• Despite recent positive ratings, the stock has experienced fluctuations, with a recent decline of about 0.2%, which may indicate volatility that could concern risk-averse investors.
• CGI Inc. has a quick ratio of 1.04, which is just above 1, suggesting that while it can cover its short-term liabilities, it may not have a strong buffer for unexpected expenses.
• Some analysts have issued hold ratings, indicating that not all market experts are fully confident in the stock's immediate growth potential.
• The company operates in a competitive technology sector, which can lead to challenges in maintaining market share and profitability against rivals.
• Recent trading volumes have been lower than average, which could suggest reduced investor interest or liquidity issues, potentially impacting the stock's performance.

Recent News

• CGI to support Suffolk County's modernization of financial and administrative IT systems with cloud-based CGI Advantage® solution (prnewswire.com)