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CGI (GIB) Benefits From Expanding Clientele, Partner Base

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CGI Group (GIB - Free Report) is benefiting from its strong portfolio and an expanding partner base. Through its recent partnership with Alphabet’s (GOOGL - Free Report) cloud platform Google Cloud, CGI is set to launch the United Nations Industrial Development Organization (UNIDO) Sustainability Planet Platform.

This innovative platform leverages CGI and Alphabet’s cloud offering Google Cloud extensive geospatial and sociological data, combined with AI-generated forecasted data, to address sustainability challenges such as air pollution, rising temperatures and flooding.

The platform, aligned with UNIDO's mission to foster inclusive and sustainable industrial development, will provide member states and stakeholders with a comprehensive view of UNIDO's projects, partnerships, and industrial development statistics.

By integrating data from diverse sources, including satellite imagery, temperature data and UNIDO's project information, users can evaluate advancement toward Sustainable Development Goals (SDGs) at both country and sector levels.

This collaboration also involves CGI's Sustainability Exploration and Environmental Data Science (SEEDS) program, aiming to develop proof-of-concept solutions for the benefit of member states, businesses, and individuals, further supporting UNIDO's digital transformation efforts.

CGI Group, Inc. Price and Consensus

 

CGI Group, Inc. Price and Consensus

CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote

 

CGI’s Robust Portfolio Drives Prospects

The latest move is in sync with CGI's efforts toward strengthening its competitive position and expanding its presence in the IT services landscape.

The addition of Alphabet and Microsoft (MSFT - Free Report) expanded CGI’s partner base emphasizes its collaborative strength within the industry.

CGI expands its partnership with Google to enhance its PulseAI platform, leveraging Google Cloud's Vertex AI for industry-specific generative AI use cases and accelerating implementation through robust infrastructure, furthering innovation in responsible AI.

CGI announced its membership in the Microsoft Intelligent Security Association (MISA). This new partnership with MISA gives CGI access to Microsoft's security product line, allowing it to provide clients with higher value and comprehensive security.

In November, CGI launched a cloud-ready enterprise payments solution, CGI All Payments, on AWS Marketplace, streamlining payment procedures for banks and offering scalability, ISO 20022 standards compliance and cloud-based delivery.

CGI also partnered with All in Solutions LLC to form a joint venture, Adcredo IT Solutions. The joint venture has been formed to expand the company’s IT and consulting services for businesses.

CGI’s Outlook Strong

The company's fiscal 2024 plan includes continued investments in end-to-end services, allowing its consultants to bring CGI's full offering value proposition to clients. This is expected to help CGI win more deals.

As macroeconomic and geopolitical variables continue to change the IT services industry's consolidation operations, the company plans further investments in acquisitions in fiscal 2024.

The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $2.59 billion, indicating 2.07% year-over-year growth. The consensus estimate for first-quarter earnings is pegged at $1.31 per share, indicating 7.38% year-over-year growth.

Zacks Rank & Stocks to Consider

Currently, GIB carries a Zacks Rank #4 (Sell).

CGI Group’s shares have returned 23.3% year to date compared with the Zacks Computer & Technology sector’s increase of 49.1%.

A better-ranked stock in the broader technology sector is Flex (FLEX - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flex’s shares have returned 33.6% on a year-to-date basis.

Long-term earnings growth rates for FLEX are pegged at 12.39%.


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