GIB CGI stock Story

GIB -  USA Stock  

USD 89.57  1.21  1.33%

As many millenniums are trying to avoid technology space, it makes sense to go over CGI Inc a little further and try to understand its current market patterns. As expected, CGI is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on investing in CGI and the market returns of the last few months appear uncorrelated. The appearance of strong forward indicators of the company suggests a short-term price swing for investors of CGI. CGI Inc is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of February 2021.
Published over six months ago
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Should you buy CGI (NYSE:GIB) based on current technical indicators?
This firm's average rating is Buy from 6 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on CGI market sentiment investors' perception of the future value of CGI. Let us look at a few aspects of CGI technical analysis. The company has Net Profit Margin of 9.76 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of CGI Group. In general, we focus on analyzing CGI stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build CGI's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of CGI's intrinsic value. In addition to deriving basic predictive indicators for CGI, we also check how macroeconomic factors affect CGI price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of CGI's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of CGI in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as CGI. Your research has to be compared to or analyzed against CGI's peers to derive any actionable benefits. When done correctly, CGI's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in CGI Group.

How does GIB CGI Stands against Peers?

Analyzing CGI competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to CGI across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out CGI Competition Details

How GIB CGI utilizes its cash?

To perform a cash flow analysis of CGI, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CGI is receiving and how much cash it distributes out in a given period. The CGI cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
CGI Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 2.23 Billion

Breaking down the case for CGI

The company has a beta of -0.1358. Let's try to break down what CGI's beta means in this case. CGI returns are very sensitive to returns on the market. As the market goes up or down, CGI is expected to follow. The beta indicator helps investors understand whether CGI moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if CGI deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The current indifference towards the small price fluctuations of CGI Inc may raise some interest from investors. The stock closed today at a share price of 71.09 on slow start in trading volume. The company management teams did not add any value to CGI investors in October. However, most investors can still diversify their portfolios with CGI Inc to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.86. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

CGI implied volatility may change after the rise

Mean deviation is down to 1.3. It may suggest a possible volatility slip. CGI Inc exhibits very low volatility with skewness of 0.51 and kurtosis of 1.72. However, we advise investors to further study CGI Inc technical indicators to make sure all market info is available and is reliable.

Our Final Take On CGI

Whereas few other entities within the information technology services industry are still a little expensive, even after the recent corrections, CGI may offer a potential longer-term growth to investors. To conclude, as of the 11th of November 2020, our final 30 days buy-hold-sell advice on the company is Hold. We believe CGI is fairly valued with very low probability of financial unrest for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of CGI Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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