European acquisition is an encouraging sign

Article Excerpt

Computer outsourcing firm CGI recently announced a new acquisition in Europe, its first major deal since the start of the COVID-19 pandemic. While using acquisitions to expand adds risk, this new purchase should help fuel the company’s growth, particularly as businesses increase their spending on cloud computing and cybersecurity. CGI INC. $103 is your #1 Aggressive buy for 2022. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 243.4 million; Market cap: $25.1 billion; Price-to-sales ratio: 2.1; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) helps its clients automate routine functions such as accounting and buying supplies. That improves the efficiency of these companies and lets them focus on their main businesses. Investors benefit from what CGI calls its “Build and Buy” strategy. The “build” part refers to the expansion of its relationships with current clients as well as the development of new ones. The “buy” part involves making acquisitions. The company tempers the risk of buying other companies by…