Trade-Ideas LLC identified

CGI Group

(

GIB

) as a strong on high relative volume 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 $6.3 million.
  • GIB has traded 50,545 shares today.
  • GIB is trading at 6.09 times the normal volume for the stock at this time of day.
  • GIB is trading at a new high 3.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on GIB:

CGI Group Inc. provides information technology and business process services. GIB has a PE ratio of 18. Currently there are 9 analysts that rate CGI Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for CGI Group has been 144,200 shares per day over the past 30 days. CGI Group has a market cap of $13.6 billion and is part of the technology sector and internet industry. Shares are up 11.5% year-to-date as of the close of trading on Tuesday.

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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 revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CGI GROUP INC has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CGI GROUP INC increased its bottom line by earning $3.05 versus $2.71 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 12.6% when compared to the same quarter one year prior, going from $251.17 million to $282.74 million.

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