Topic: How To Invest

What is Pat’s commentary for the week of March 14, 2023

Article Excerpt

For 2023, we once again chose CGI Inc. as the #1 Aggressive Stock of the Year for our flagship newsletter, The Successful Investor. This is the seventh year in a row that we’ve picked CGI—Canada’s largest provider of computer outsourcing services. Investors who were quick to act on our advice have not been disappointed: the stock is now up over 123% since we first highlighted it as a top pick for 2016. Compare that to the 56% gain for the S&P/TSX Composite Index. CGI often uses acquisitions to fuel its growth. That adds risk, which is one reason why we rate the stock as “Extra Risk.” However, the company operates in a highly fragmented market, and cuts the risk of growth by acquisition by targeting smaller firms that it can easily absorb. Recent acquisitions have also let it enter new countries and regions. At the same time, the company continues to strengthen its relationships with existing clients. That gives it plenty of recurring revenue…