‘Build and Buy’ plan works

Article Excerpt

CGI INC. $108 is your #1 Aggressive buy for 2021. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 247.9 million; Market cap: $26.8 billion; Price-to-sales ratio: 2.2; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services. CGI follows what its calls a “Build and Buy” strategy. The “build” part refers to the expansion of its relationships with current clients as well as the development of new ones. The “buy” part involves making acquisitions. The company tempers the risk of buying other companies by targeting firms that complement its expertise or help CGI to expand geographically. As part of that plan, the company recently paid an undisclosed amount for Array Holding Company, Inc. That firm provides computer services to the U.S. Department of Defense and other government organizations. It should help CGI win more U.S. government contracts—the “build” part of its strategy. CGI is your #1 Aggressive Buy for 2021. 2021…