Skip to content
Quotes by TradingView
Trade Via TrendTrade Via Trend
Trade Via Trend
  • Blog
  • Trend Trading Principles
  • Sectors
  • INFO
FacebookTwitter
 
  • Blog
  • Trend Trading Principles
  • Sectors
  • INFO

CGI Group & Comtech – Trend Following

The Information Technology sector is once again leading a performance meter in a stock market. Not only mega caps are showing good results but also other tech players among the big and small-caps. Using a trend following the strategy I have found two interesting stock picks with an optimistic price outlook. One big-cap CGI Group Inc. (NYSE: GIB) and one small-cap Comtech Telecommunications Corp. (NASDAQ: CMTL).

 

CGI Group Inc.

A company provides IT and consulting services within application, infrastructure or business process segments. They offer solutions in credit, payment and trade, cybersecurity and various other areas using information technology.

 

Valuation and Profitability Ratios

  • Return on Equity (RoE) = 16.34
  • Return on Invested Capital (RoIC) = 12.84
  • Debt to Enterprise Value (EV) = 0.09
  • The last reported earnings have beaten the estimates $0.78 to $0.77. Revenue growth was also pretty positive over 10%.

 

Technical Analyses

A stock price is on an upward trend since 2009 with very clear price following outlook. The price is moving within bull trend channel depicted by blue lines. The most current and strong support is 50 MA. Any pullback toward 50MA or lower blue line should be considered as buying opportunity.
A significant volume exchange on 28 February accompanied with not that significant price change signals a lot of profit taking with high interest for the share ownership from buyers. Furthermore, the following 7 days until now still hold the price at the same level. This is a sign of relatively positive outlook CGI Group.

CGI Group

 

 

Comtech Telecommunications Corp.

Comtech develops and produces systems and provides services for advanced communication solutions. The company provides applications and technologies not only to commercial customers but also to government customers such as state and local governments.

 

Valuation and Profitability Ratios

  • Return on Equity (RoE) = 3.33
  • Return on Invested Capital (RoIC) = 2.31
  • Debt to Enterprise Value (EV) = 0.34
  • The last reported earnings have beaten the estimates $0.07 to -$0.28. This is a 75% surprise.

Technical Analyses

The stock has been trading in a bull trend channel (blue lines) since June 2017. For last five months, it has been bouncing between its long-term resistance (orange dashed line) and 100 MA until it finally broke through and stayed above. At the moment with current sector up-trend, there’s no doubt the price will most probably continue rising. Furthermore, as soon as this setup raises the attention of more market participants, it may fly up significantly. The broken orange resistance represents a support level now.

Comtech Telecommunications

 

The stochastics such as RSI and MACD are well positioned in positive territories for both stocks. (click on the chart for detailed view)

Both companies bring good investing opportunity. In a long perspective, the investors should profit from investing in the technology sector. Remember to stay disciplined and focus on the big picture!

 

 

 

This post is only an opinion of a contributor. It serves for informative and educational purposes only. The article is not an investment recommendation. Trading any financial instrument involves risk and thus, you should consult every financial decision with your financial advisor. Read our full disclaimer!
Category: Communication Equipment, Internet Software & ServicesBy MarkMarch 7, 2018Leave a comment
Tags: CGI GroupComtech Telecommunicationsequityfundamental analysisinvestingresistancestockstock picksupporttechnical analysistechnologytradingtrendtrend analysestrend followingtrend lines
Share this post
Share with FacebookShare with TwitterShare with Google+Share with PinterestShare with LinkedIn

Post navigation

PreviousPrevious post:Market Review Update – S&P 500, Dow, Nasdaq, FTSE 100 – Week #10NextNext post:Elixinol Global – Marijuana Investing

Related posts

Paypal
PayPal – Possible Breakout Forthcoming
January 8, 2019

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

clear formPost comment

Subscribe to new posts


Loading - Please wait
Loading - Please wait

Recent Posts
  • 4 Reasons Why Gold Should Be Part of Your Portfolio
  • Marijuana Stocks Bottomed – This Chart Proves It
  • PayPal – Possible Breakout Forthcoming
  • Real Market Rally or Christmas Fling?
  • Stock Market Ahead of Crucial Support Level Test
  • Somebody wished BEAR (market) under the Christmas tree
Top Posts & Pages
  • Cup and Handle
  • Why Are Marijuana Stocks Dropping?
Archives
  • About Us
  • Disclaimer
  • Privacy Policy
  • Blog
  • Education
Trade Via Trend

© Copyright 2016 - 2018 tradeviatrend.com

Join Now
Signup for Our Newsletter
Email *
First Name
Last Name
* Required Field
Email Marketing by Benchmark