Back to top

Analyst Blog

MoneyGram International (MGI - Analyst Report) recently signed an agreement with two postal services providers to improve its money transfer services in the African countries of Uganda and Tanzania.

The postal service providers are Uganda Post Limited (Posta Uganda), and Tanzania Posts Corporation (Posta Tanzania).

As per World Bank figures, Uganda has a population of 33 million, whereas inward remittances are about 775 million. On the other hand, Tanzania has a population of 44 million and inward remittances are around 17 million.

At present traditional banking facilities are not available at rural locations in Uganda and Tanzania and post offices there are mostly located in the outskirts. Thus the rural consumers in these countries don’t have proper access to money transfer services at places where banking conveniences are beyond reach.

Thus the entry of MoneyGram in these locations through post offices is expected to be a boon to this population. Using MoneyGram’s services, people will be able to transfer and receive funds conveniently and safely in these suburban locations.

We expect the deal with Posta Uganda and Posta Tanzania to bolster the client base of the company thereby helping MoneyGram generate more business and improve revenues further.

Earler, in Apr 2013, MoneyGram fortified its African operations through its alliance with a leading South African Bank– First National Bank (FNB). The deal allows FNB account holders to send and receive money transfers using their mobile devices and the bank's huge ATM network.

MoneyGram currently carries a Zacks Rank #3 (Hold). Other stocks like Moody’s Corp (MCO - Analyst Report) carry a favorable Zacks Rank #1 (Strong Buy) whereas Financial Engines Inc. (FNGN - Snapshot Report) and SS&C Technologies Holdings Inc. (SSNC - Snapshot Report) carry a Zacks Rank #2 (Buy) and are worth noting.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CITI TRENDS… CTRN 21.53 +5.49%
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
WILLIAMS(C)… CWEI 117.06 +3.73%
FIRSTSERVIC… FSRV 54.81 +2.62%