As far as Canadian technology companies go, CGI Inc. (TSX:GIB.A) is a great option for investors to consider when looking for growth on the Toronto Stock Exchange (TSX). CGI is an IT outsourcing and consulting firm. The company has shown very good earnings of late despite some initial worries about how corporate spending on the services provided by CGI could slow in a recessionary/depression-like environment.
This company is relatively inexpensive on the basis of growth, trading at less than 20 times earnings at the time of writing, with an above market average growth rate and a very respectable long-term outlook for this company's core businesses. North American clients transition various tasks to cheaper locales around the world and companies look for ways to improve Information Technology infrastructure to improve productivity, CGI’s pipeline of business continues to grow, buoying hopes that earnings will grow in tandem.
This stock is trading below its 52-week high at the time of writing but does have a long runway for growth over the very long term, making CGI one of my top picks for long term growth oriented investors. This is a company that has shown some resilience during this pandemic to economic stocks, furthering the investment thesis for this stock as a great long term buy and hold opportunity.
Invest wisely, my friends.
