Our #1 pick

Article Excerpt

CGI Group is more speculative than most of our other recommendations. It does not pay a dividend, and its major shareholders control the company through multiple-voting shares. Its aggressive growth-by-acquisition strategy also adds risk. It’s true that each of these factors is something of a negative, but each is minor compared to CGI’s strong growth prospects. That’s why we picked CGI as our Stock of the Year in January 2010. The stock has gained 20.0% since then. We still feel CGI has years of growth ahead, particularly because its services help cash-strapped governments and businesses cut costs. It also trades at a low multiple to earnings. That’s why we are once again picking CGI as our Stock of the Year for 2011. CGI GROUP INC. $18 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 269.6 million; Market cap: $4.9 billion; Price-to-sales ratio: 1.3; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of…

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