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CGI Group's (GIB) All Payments Solution Selected by PTC

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CGI Group (GIB - Free Report) recently announced that Peoples Group division, Peoples Trust Company (“PTC”), has selected its CGI All Payments to expand its payments capabilities. CGI All Payments will help PTC modernize and digitize its payment systems and expand its payment offerings for customers.

Automated Clearing Settlement System (“ACSS”) is the system through which Canadian cheques and electronic payments are cleared and settled. In June, PTC became the first new direct participant in Canada’s ACSS in almost 40 years.

CGI All Payments, which is a cloud-based platform-as-a-service (PaaS) solution, is gaining traction among banks simply because it helps them rapidly deploy the end-to-end payments processing systems. The company has been winning financial services on a regular basis, driven by its expanding portfolio of solutions.

CGI won a contract from P27 Nordic Payments, a joint initiative by Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank, in the second quarter of 2022. The joint venture selected CGI to deliver a highly secure and available office IT environment in support of its aim to build the world's first real-time, cross-border payment system in multiple currencies.

What Awaits CGI Shares in the Rest of 2022?

CGI shares have lost 8.1% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s decline of 29.1% over the same time frame.
 

 

CGI is benefiting from a huge backlog that stood at CAD 23.1 billion at the end of the second quarter, representing 1.9 times of revenues, the vast majority of which was comprised of long-term managed services and digital transformation engagements.

CGI is well poised to benefit from the fact that clients are planning to modernize their application portfolios. Moreover, strategic acquisitions like Umanis and Harwell are noteworthy.

The buyout of Umanis expands CGI’s position across Western and Southern Europe. The recently announced acquisition of Harwell, a management consulting firm, expands CGI’s presence in France along with its financial services clientele.

The acquisition strengthens CGI’s business consulting capabilities across retail banking, corporate and investment banking, capital markets, insurance, and other specialized banking-related services such as energy trading and asset management.

Zacks Rank & Other Stocks to Consider

CGI currently has a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for CGI’s third-quarter fiscal 2022 earnings stand at $1.18 per share, unchanged in the past 30 days. The consensus mark for revenues is pegged at $2.55 billion, suggesting 3.56% growth from the figure reported in the year-ago quarter.

Broadcom (AVGO - Free Report) , Aspen Technology (AZPN - Free Report) and Dell (DELL - Free Report) are top-ranked stocks in the broader sector. All three sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s third-quarter fiscal 2022 earnings stands at $9.62 per share, unchanged in the past 30 days.

The consensus mark for AVGO’s revenues is pegged at $8.41 billion, suggesting 24.01% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Aspen’s fourth-quarter fiscal 2022 earnings stands at $2.16 per share, unchanged in the past 30 days.

The consensus mark for AZPN’s revenues is pegged at $297.42 million, suggesting 50.24% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Dell’s second-quarter fiscal 2023 earnings stands at $1.62 per share, unchanged in the past 30 days.

The consensus mark for Dell’s revenues is pegged at $26.75 billion, suggesting 2.35% growth from the figure reported in the year-ago quarter.

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