CGI is still our #1 pick

Article Excerpt

CGI GROUP INC. $23 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 264.6 million; Market cap: $6.1 billion; Price-to-sales ratio: 1.4; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) has gained 27.1% since we named it our “#1 Stock of the Year” for 2011. CGI is Canada’s largest provider of computer-outsourcing services. The company’s services can automate certain routine functions, such as accounting and buying supplies. That makes its clients more efficient. The company’s strong reputation continues to help it win new contracts. For example, CGI has won a contract from the University Health Network to build a system that will store medical images, such as X-rays and magnetic resonance images (MRIs), in a central database. This will make it easier for Ontario doctors and hospitals to access and share this information, and should speed up treatment. The deal is worth $50 million. That’s small next to CGI’s annual revenue of $4.2 billion. Still, this contract…