Topic: How To Invest

What is Pat’s commentary for the week of March 18, 2025

Article Excerpt

Computer outsourcing specialist CGI Inc. has been a terrific performer for our subscribers since December 2007 when we promoted it to our Successful Investor newsletter. In fact, the stock has soared 1,195% compared to the 80% gain for the S&P/TSX Composite Index. CGI shares hit a new all-time high of $175.35 on January 30, 2025, but they have since dropped 16.2% to the current level. The decrease is partly due to concerns that the new Department of Government Efficiency (DOGE), headed by billionaire businessman Elon Musk, will cut the U.S. government’s consulting contracts (the U.S. federal government is one CGI’s biggest clients). However, the company will probably benefit from DOGE. That’s because it helps government and businesses automate routine functions and improve efficiency. Moreover, CGI stands to profit as more businesses turn to consultants to help them implement and manage artificial intelligence software. As a service provider with operations in its local markets, the company faces a relatively low tariff threat. I…