CGI (GIB) Offers Its Enterprise Payments Platform on AWS
CGI GIB recently announced the availability of CGI All Payments, its cloud-ready enterprise payments solution on Amazon Web Services (AWS) Marketplace.
CGI All Payments enables banks to assist their enterprise clients by streamlining payment procedures. The scalable solution is easily deployable across multi-IT ecosystems.
The solution is an API-enabled system designed to meet ISO 20022 standards. It is utilized by financial services clients worldwide and supports numerous currencies, languages, and payment methods. Clients will also benefit from cloud-based delivery and simpler procurement provided by AWS Marketplace.
CGI’s Robust Portfolio Drives Prospects
CGI is benefiting from its portfolio and an expanding partner base. Shares have gained 17.6% year to date, outperforming the Zacks Computer - Services industry’s return of 7.1%.
CGI Group, Inc. Price and Consensus
CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote
The company reported fourth-quarter fiscal 2023 revenues of $3.51 billion, which increased 8% year over year. It witnessed strong demand in the health and government sectors. Continued adoption of CGI’s cybersecurity, logistics, financial management and citizen services has been a major growth driver.
The addition of Alphabet GOOGL and Microsoft MSFT has expanded CGI’s partner base.
Recently, CGI partnered with Alphabet division Google to encourage innovation in using artificial intelligence (AI) appropriately. Clients can reduce turnaround time through innovative generative AI use cases specific to their industry.
CGI will use the Google Cloud Platform (Google Cloud) as part of the arrangement to increase the capabilities of its CGI PulseAI.
CGI also announced its membership in the Microsoft Intelligent Security Association (MISA). This new partnership with MISA gives CGI access to Microsoft's security product line, allowing it to provide clients with higher value and comprehensive security.
Outlook Strong
The company's fiscal 2024 plan includes continued investments in end-to-end services, allowing its consultants to bring CGI's full offering value proposition to clients. This is expected to help CGI win more deals.
As macroeconomic and geopolitical variables continue to change the IT services industry's consolidation operations, the company plans further investments in acquisitions in fiscal 2024.
Recently, CGI acquired Momentum Consulting Corp. to strengthen its position in the United States and provide digital expertise to its clients.
CGI has partnered with All In Solutions LLC to form a joint venture, Adcredo IT Solutions. The joint venture has been formed to expand both the company’s IT and consulting services for businesses.
The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $2.59 billion, indicating 2.1% year-over-year growth. The consensus estimate for first-quarter earnings is pegged at $1.31 per share, indicating growth of 7.4% from the year-ago quarter.
The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $11.24 billion, indicating 5.2% year-over-year growth. The consensus mark for fiscal 2024 earnings is pegged at $6.10 per share, indicating growth of 9.9% year over year.
Zacks Rank & Stock to Consider
CGI currently has a Zacks Rank #4 (Sell).
A better-ranked stock in the broader technology sector is NVIDIA NVDA, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA shares have gained 227.2% in the year-to-date period. NVIDIA's long-term earnings growth rate is currently projected at 13.50%.
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