Topic: How To Invest

The Successful Investor Hotline – Friday, July 31, 2020

Article Excerpt

CGI INC., $95.67, Toronto symbol GIB.A, remains our #1 Aggressive buy for 2020. The company is a leading provider of computer outsourcing services. It helps clients automate routine functions such as accounting and buying supplies. That improves the efficiency of those businesses and lets them focus on their main operations. Due to the COVID-19 pandemic, many businesses have cut spending on new computer systems. Travel restrictions have also hurt the ability of CGI to visit client premises. As a result, the company’s revenue in its fiscal 2020 third quarter, ended June 30, 2020, fell 2.2%, to $3.05 billion from $3.12 billion a year earlier. Even so, that beat the consensus forecast of $2.98 billion. CGI gets 90% of its revenue from outside of Canada, so if you factor out currency exchange rates, overall revenue in the quarter declined 3.5%. In response to the pandemic, the company will cut 2% of its workforce and other costs. If you exclude unusual items, overall earnings dropped 8.5%, to…

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