Topic: How To Invest

The Successful Investor Hotline – Friday, April 30, 2021

Article Excerpt

CGI INC., $108.75, Toronto symbol GIB.A, is our #1 Aggressive Buy for 2021. The stock lets investors tap Canada’s largest provider of computer outsourcing services. It helps its clients automate certain routine functions like accounting and buying supplies. That makes companies more efficient and lets them focus on their main businesses. The company’s revenue in its fiscal 2021 second quarter, ended March 31, 2021, fell 1.7%, to $3.09 billion from $3.13 billion a year earlier. That matched the consensus forecast. The lower revenues are largely because CGI’s manufacturing and retailing clients have cut their spending on new computer systems due to COVID-19 disruptions. However, demand from government clients remains strong. In response to the pandemic, the company cut jobs and closed its Brazilian operations. If you exclude all unusual items, overall earnings in the quarter rose 1.0%, to $341.9 million from $338.4 million. CGI prefers to reward investors with share buybacks instead of paying dividends. Due to fewer shares outstanding, earnings per share improved 7.1%,…