The S&P/TSX Composite Index shed 176 points on Friday, July 28. Some of the worst performing sectors on the TSX included Telecom, Utilities, and Industrials. Today, I want to zero-in on a top technology stock that looks undervalued in the final days of July. Let’s jump in.
CGI (TSX:GIB.A) is a Montreal-based company that provides information technology (IT) and business process services in Canada; Western, Southern, Central, and Eastern Europe. Indeed, it provides services to a worldwide customer base. Shares of this tech stock have dropped 4.9% month-over-month as of close on July 27. The stock is still up 10% so far in 2023.
This company released its third quarter (Q3) fiscal 2023 earnings on July 26. CGI delivered revenue growth of 11% to $3.62 billion in Q3. That was up 6.3% year-over-year in constant currency. EBIT stands for earnings before interest and taxes. In Q3, CGI reported adjusted EBIT of $584 million – up 12% compared to Q3 fiscal 2022.
In Q3 2023, the company reported total bookings of $4.38 billion – up from $3.41 billion in the prior year. Meanwhile, its backlog rose to a hefty $25.6 billion.
Shares of this tech stock currently possess a price-to-earnings ratio of 20. That puts CGI in favourable value territory compared to it peers. Moreover, CGI is geared up for strong earnings growth over the long term. This is a tech stock that is worth buying on the dip in a choppy summer market.
Tech Insider
