Trade-Ideas: CGI Group (GIB) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified CGI Group (GIB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified CGI Group as such a stock due to the following factors:
- GIB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
- GIB has traded 152,641 shares today.
- GIB is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GIB with the Ticky from Trade-Ideas. See the FREE profile for GIB NOW at Trade-IdeasMore details on GIB: CGI Group Inc., together with its subsidiaries, provides information technology (IT) and business process services in the Americas, Europe, and the Asia Pacific. GIB has a PE ratio of 104.0. Currently there are 12 analysts that rate CGI Group a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for CGI Group has been 160,200 shares per day over the past 30 days. CGI Group has a market cap of $9.8 billion and is part of the technology sector and internet industry. Shares are up 52.9% year to date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates CGI Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- GIB's very impressive revenue growth greatly exceeded the industry average of 15.4%. Since the same quarter one year prior, revenues leaped by 141.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 104.3% when compared to the same quarter one year prior, rising from $87.23 million to $178.17 million.
- The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
- Powered by its strong earnings growth of 69.69% and other important driving factors, this stock has surged by 27.79% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- CGI GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CGI GROUP INC reported lower earnings of $0.55 versus $1.57 in the prior year.
- You can view the full CGI Group Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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