5-Star Stocks Poised to Pop: CGI Group

Recs

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canada's largest IT services company, CGI Group (NYSE: GIB), has earned a coveted five-star ranking.

With that in mind, let's take a closer look at CGI's business and see what CAPS investors are saying about the stock right now.

CGI facts

Headquarters (Founded)

Montreal, Canada (1976)

Market Cap

$3.9 billion

Industry

IT consulting

Trailing-12-Month Revenue

$3.6 billion

Management

CEO Michael Roach (since 2006)
CFO David Anderson (since 2006)

Return on Equity (Average, Past 3 Years)

13.7%

Cash / Debt

$234 million / $260 million

Competitors

IBM (NYSE: IBM)
Accenture (NYSE: ACN)
Infosys (Nasdaq: INFY)

CAPS Members Bullish on GIB Also Bullish on

Apple (Nasdaq: AAPL)
Freeport-McMoRan (NYSE: FCX)

CAPS Members Bearish on GIB Also Bearish on

InterOil (NYSE: IOC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, all of the 73 All-Star members who have rated CGI believe the stock will outperform the S&P 500 going forward. These bulls include ajsiegel and MagicDiligence, both of whom are ranked in the top 5% of our community.

Just last month, ajsiegel tapped CGI as a business that really gets IT: "Great cash flow and proprietary software that seems to be popular at many gov't agencies."

In a pitch from a week earlier, MagicDiligence takes a balanced bull stance. Here's an excerpt:

CGI Group is Canada's largest IT consulting firm, based in Montreal, and dominates the consulting market for most of the top-shelf Canadian companies. ... On the growth side, CGI benefits from a secular trend toward outsourcing of IT functions, a trend that will likely continue. It makes little sense for large companies to maintain their own IT departments when much of the work is standardized around generally accepted hardware and protocols better managed by a specialized firm. ... The business is a good one but competitive, the growth prospects are available but not easily grasped, and the financial position is nothing to be concerned about or excited over.

What do you think about CGI, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Accenture is a Motley Fool Inside Value pick, and Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.

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