Chris Blumas - BNN -TOP PICK CGI (GIB.A TSX)
CGI is an IT outsourcing and consulting company, and its revenues are split almost evenly between these service offerings. The company has clients around the world and a strong competitive position in North America and Europe. As companies look to boost their efficiency and transition to a more digital world, CGI’s service offerings and global delivery model lead to enduring client relationships and a high level of recurring revenues. Going forward, the CGI is well positioned to benefit from trends in digitization and has the financial flexibility to create value through acquisitions, organic initiatives, and share buybacks. The shares currently trading around 18 times forward earnings and have a trailing free cash flow yield of almost six percent. CGI does not pay a dividend to shareholders.