3 Undervalued Stocks to Buy Today | The Motley Fool Canada: "CGI Group Inc. (TSX:GIB.A)(NYSE:GIB) is the fifth-largest independent information technology and business process services firm in the world.
At today’s levels, its stock trades at just 17 times fiscal 2016’s estimated earnings per share of $3.47 and only 15.8 times fiscal 2017’s estimated earnings per share of $3.73, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 35.6 and its industry average multiple of 21.8.
I think CGI’s stock could consistently trade at a fair multiple of at least 20, which would place its shares upwards of $74 by the conclusion of fiscal 2017, representing upside of more than 25% from current levels.
Investors should note that the company does not currently pay a dividend, but its increased amount of cash provided by operating activities, including 9.7% year-over-year growth to $1.29 billion in fiscal 2015, could allow it to initiate one in 2016."
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