CGI Federal, a U.S. subsidiary under the umbrella of CGI, has struck gold with a monumental deal. They have inked a critical contract with the Centers for Medicare & Medicaid Services (CMS) that intends to revolutionize access to Medicare for over 65 million beneficiaries across the country.
What’s on the cards, you ask? Well, CGI is all set to revamp the Health Plan Management System (HPMS), a crucial platform that drives the Medicare Advantage and Medicare Part D (MAPD) programs.
The contract, valued at a substantial $72 million, is designed for a primary term of one year, with scope for extension through four additional one-year periods. That’s some serious commitment!
CGI’s mission is clear: infuse HPMS with modern technologies like intelligent automation, cloud-based tools, data analytics, and Agile delivery approaches. This strategic facelift is expected to optimize plan enrollment, ensure compliance, and beef up cybersecurity defenses against emerging cyber threats.
With vast expertise in handling intricate IT ventures for HPMS, CGI is well-poised to develop cutting-edge solutions that resonate with the shifting demands of Medicare beneficiaries and key stakeholders.
CGI Group, Inc. Spurs Growth With Client Expansion
CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote
The revamped HPMS will optimize annual lifecycle activities for MAPD plans and introduce user-centric enhancements through a comprehensive website. With more than 70 software modules, HPMS serves as a backbone supporting critical functions impacting millions of Medicare beneficiaries. The system’s Plan Management Dashboard offers real-time insights, empowering CMS and health plan executives with actionable data.
CGI’s Growth Trajectory Fueled By Diversified Client Base
CGI Group’s shares have returned 9.3% year to date compared with the Zacks Computer & Technology sector’s increase of 10.3%. Its expanding customer base and portfolio strength are expected to drive CGI’s top-line growth.
The company’s expanding federal customer base is noteworthy. It recently won a contract from the Commonwealth of Massachusetts to deliver a financial management solution through CGI Advantage, a cloud-based platform that integrates financial data in a modern, unified platform. The State of Utah also selected its CGI Advantage for the modernization of its human capital management solution.
CGI’s expanding international footprint has been a key catalyst. LocalTapiola, one of the largest insurance and financial services companies in Finland, recently extended its long-term strategic partnership with GIB for an additional five years.
GIB’s strong partner base, which includes Alphabet, Microsoft, and Amazon, has been a key catalyst.
Zacks Rank & Stocks to Consider
CGI currently carries a Zacks Rank #3 (Hold).
GIB shares have underperformed the Zacks Computer & Technology sector in the year-to-date period. While CGI shares have gained 9.3%, the broader sector has returned 10.3%.
NVIDIA NVDA, Meta Platforms META, and Synopsys SNPS are some better-ranked stocks in the broader sector, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Year to date, shares of NVDA, META, and SNPS have gained 80.5%, 40.2%, and 13.6%, respectively.
Long-term earnings growth rates for NVIDIA, Meta Platforms, and Synopsys are currently pegged at 29.73%, 19.5%, and 17.51%, respectively.
Zacks Names #1 Semiconductor Stock
It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it’s positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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