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Unisys Inks Deal to Offer IT Solutions to 3 Petersen Banks

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A subsidiary of Unisys Corporation (UIS - Free Report) recently announced that it has inked an agreement with three of the four banks of Petersen Group, a financial services conglomerate in Argentina.  The contract consists of three phases. The financials of the deal remain under wraps.

Per the deal, Unisys will incorporate its Sistema Financiero Bancario y Sistema Contable Bancario (SFB/SCB) core banking system, to help provide application modernization services to Petersen Group’s Nuevo Banco de Entre Ríos, Banco de San Juan and Banco de Santa Cruz banks. The new platform will be integrated within the banks' digital channels, including mobile banking and will help enhance their services, going forward.

Unisys’s SFB/SCB system is designed to enable clear integration and support within the banks' current systems and operating environments. This will help mitigate issues related to time management, as well as benefit customers by allowing them to operate across agile digital channels.

On Feb 27, 2017, Unisys collaborated with Air New Zealand, the national airline of the country, to offer Cargo Portal Services (CPS) for its current and prospective freight forwarder clients. The collaboration is a natural extension of the long-serving ties of Unisys with the airline company.

The company has been a laggard in the recent times, with an average loss of 7% against a gain of 6.3% in the last three months for the Zacks categorized IT Services industry. Such strings of contract wins are likely to help the company boost its revenues and improve its position compared with its peers.

Based in Blue Bell, PA, Unisys is concentrating on business opportunities in fewer, more profitable sectors in the IT marketplace. To drive future growth, the company is focusing its resources and investments in four targeted, high-potential market areas. These include security (IT security and physical security), data center transformation and outsourcing services, end-user outsourcing and support services, and applications modernization and outsourcing services. As it seeks to keep up with the evolution in the IT industry, the company’s services unit looks set to take advantage of growth prospects in high-margin services.

Unisys currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Wix.com Ltd. (WIX - Free Report) , Computer Task Group Incorporated and CDW Corporation (CDW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wix.com has a strong long-term earnings growth expectation of 20%.

Computer Task Group has a solid earnings history, beating estimates thrice in the trailing four quarters with an average positive surprise of 35%. It has a healthy long-term earnings growth expectation of 10%.

CDW Corporation has a long-term earnings growth expectation of 8%. The stock also has a healthy earnings history, beating estimates in three of the trailing four quarters with an average positive surprise of 5.9%.

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