CGI GIB is expanding its footprint in the United States with the recently announced acquisition of Momentum Consulting, a Miami-based IT and business consulting firm.
The addition of Momentum Consulting’s 175 highly skilled consultants to CGI’s repertoire is expected to improve the company’s capability of addressing needs of the local clients. In the United Sates, CGI has roughly 13,000 consultants and professionals across 80 offices.
The company benefits from its proximity-based business model that combines its worldwide network of experts and capabilities with local accountability and end-to-end services for clients. In the fiscal third quarter, the number of consultants and professionals increased year over year by 3K, totaling 91,500 worldwide.
CGI is benefiting from an expanding clientele and strong partner base. Momentum Consulting acquisition will also extend clientele in domains like retail, manufacturing, transportation and logistics.
The company recently inked a partnership with Alimentation Couche-Tard worth C$380 million to deliver managed IT services. As part of the ten-year partnership, CGI will deliver a comprehensive range of IT services and infrastructure support for the mission-critical business functions of Couche-Tard.
CGI Group, Inc. Price and Consensus
CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote
Alimentation Couche-Tard, which is a multinational operator of convenience stores in Canada, will leverage the partnership to improve services to its customers.
CGI’s Prospects Bright in 2023
CGI is expected to benefit from the ongoing digitalization amid challenging macroeconomic conditions. Strong demand for its managed services and IP offerings is expected to drive top-line growth in the near term.
The company’s managed services pipeline for industries like manufacturing, retail, and energy and utilities is up more than 33% for the next year, while the IP pipeline is up 30%. Moreover, in government health care and insurance, CGI’s pipeline remains well balanced across consulting system integration and managed services and is up 20% year over year.
It is also investing in the development of AI-based solutions and services and plans to invest $1 billion over the next three years.
Zacks Rank & Stocks to Consider
CGI currently has a Zacks Rank #3 (Hold).
BlackLine BL, CrowdStrike CRWD and DoorDash DASH are some better-ranked stocks in the broader sector, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for BlackLine, CrowdStrike and DoorDash is currently pegged at 49.14%, 35.71% and 48.27%, respectively.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
CGI Group, Inc. (GIB) : Free Stock Analysis Report
BlackLine (BL) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
DoorDash, Inc. (DASH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
