CGI Group ( GIB Quick Quote GIB - Free Report) is benefitting from a strong partner base and expanding clientele. Shares have returned 18.1% compared with the Zacks Computer-Services industry’s rise of 7% on a year-to-date basis. CGI’s recent win of a five-year contract from the U.S. Strategic Command (USSTRATCOM) to develop and maintain data integration solutions for the Global Data Integration (GDI) environment strengthens its prospects. CGI's commitment to advancing defense technology aims to enhance USSTRATCOM's operational capabilities through the implementation of advanced data fusion and transformation solutions. This collaboration is integral to the U.S. Joint All-Domain Command and Control initiative, emphasizing CGI's role in facilitating seamless integration across various domains for improved global situational awareness and decision-making capabilities. CGI’s Prospects Bright in 2023
CGI's presence in the IT services industry is marked by sustained growth in critical sectors like health and government and defense. The company's commitment to artificial intelligence, strategic acquisitions and seamless data integration solidifies its strong market positioning and forward-looking strategies.
In line with its forward-looking approach, CGI's recent partnership with Alphabet ( GOOGL Quick Quote GOOGL - Free Report) deepens its commitment to artificial intelligence. CGI deepens its partnership with Alphabet division Google, using Google Cloud to enhance its PulseAI solution, enabling industry-specific AI models like CGI PulseAI for finance and exploring applications in healthcare for faster and more accurate medical claims processing. CGI further solidifies its commitment to responsible AI by officially signing the Canadian Voluntary Code of Conduct, aligning with its principles to ensure risk analysis and mitigation throughout AI design and development. It emphasizes ongoing collaboration, actively engaging in government initiatives for the responsible development of advanced generative AI systems. In fiscal 2023, CGI expanded its footprint in the financial services sector as it signed 28 agreements with clients in the United States, Canada, the U.K. and Australia. The company’s All Payments solution has recently been selected by Scotiabank, a leading Canadian multinational bank. CGI’s cloud-proven enterprise payments platform will support Scotiabank’s innovative advances in payment solutions for its global client base. CGI All Payments is used by financial services clients across the world and supports multiple currencies, languages and payment channels. Securing a 10-year partnership with Circle K showcases CGI's expanded footprint, focusing on enhancing managed IT services. This aligns with the company's commitment to elevate customer and employee experiences, amplifying CGI's impact across various industries. CGI invests in developing AI-based solutions and services and plans to invest $1 billion over the next three years. The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $2.59 billion and indicates growth of 2.07% year over year. Zacks Rank & Stocks to Consider
Currently, GIB carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Badger Meter ( BMI Quick Quote BMI - Free Report) and Arista Networks ( ANET Quick Quote ANET - Free Report) . While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Badger Meter’s shares have gained 35.9% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%. Arista Networks’ shares have gained 71.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%