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CGI Group Extends Partnership with iA Financial for 10 Years

Zacks Equity Research

CGI Group Inc. GIB recently renewed and expanded its partnership with iA Financial Group (Industrial Alliance, Insurance and Financial Services Inc.) for 10 years. The contract worth $150 million will enable it to spur digital transformation to fuel its growth momentum.

Founded in 1892, iA Financial offers a range of life and health insurance services and products across Canada. Per the agreement, CGI will continue offering its support toward strategic growth of iA Financial Group by offering a wide range of IT services and solutions. iA Financial intends to leverage CGI Group 's end-to-end solutions, and innovative approaches to optimize IT investments, primarily through cloud computing.  

Notably, CGI Group is the fifth largest independent IT and business process services firms globally. It provides the full range of IT services including consulting, systems integration and the management of business and IT functions. The company's primary focus is large scale systems integration and outsourcing contracts.

However, CGI Group underperformed the Zacks categorized Computer - Services industry with an average negative return of 2.3% compared with a negative 1.3% for the latter, over a period of 90 days. In addition, over the same time frame, the company’s earnings estimates for the current quarter decreased 1.5%.

CGI Group currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the industry includeCSG Systems CSGS, Ebix Inc. EBIX and WidePoint Corp. WYY. Ebix and CSG Systems both carry a Zacks Rank #2 (Buy), whereas WidePoint sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CSG Systems has beaten estimates in all the trailing four quarters with an average positive surprise of 24.9%.

Ebix has a long-term earnings growth expectation of 10% and has beaten estimates in all the trailing four quarters with an average positive surprise of 15%.

WidePoint has beaten estimates in all the trailing four quarters with an average positive earnings surprise of 37.5%.

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