Back to top

Analyst Blog

MoneyGram International Inc. (MGI - Analyst Report) fortified its association with Pennsylvania-based commercial bank − Susquehanna Bancshares − as it extended the official check processing contract for another five years.

The money transfer, bill payment and check processing company will continue to process the official checks for Susquehanna’s banking operations across the Mid-Atlantic region, primarily West Virginia, Maryland and New Jersey. Accounting for most of the financial paper products segment, MoneyGram’s official check outsourcing services and program management are facilitated through its high-tech online platform − MoneyGram PrimeLink Official Check, which is also used in this alliance.

This advanced web-based service providing solution not only eases the customer’s banking experience but also mitigates the risk of fraud by swiftly identifying any sham transactions. Given the hike in losses in the financial services industry due to fraud and money laundering, we believe that MoneyGram’s PrimeLink Official Check has huge potential for secure and reliable money management. Hence, this contract extension is expected to significantly boost the company’s financials.

While MoneyGram faces challenges in increasing its revenues in the financial paper products segment, we believe such alliances and network expansion will support the company’s initiatives to boost the segment’s financials. Overall, led by diversified and market-compliant growth strategies, MoneyGram aims to continue achieving double-digit growth in money transfer transactions, thereby increasing free cash flow.

Despite the unfavorable global economic condition, MoneyGram showed modest growth in its operations, driven by successful penetration into unexplored markets and improved position in existing weaker markets. The company is also gaining traction in self-service and new channel revenue sources within its money transfer business.

While MoneyGram carries a Zacks Rank #3 (Hold), outperformers in the financial sector include Fleetcor Tech Inc. (FLT - Snapshot Report), Portfolio Recovery Associates Inc. (PRAA - Analyst Report) and Glacier Bancorp Inc. (GBCI - Snapshot Report). All these stocks carry a Zacks Rank #1 (Strong Buy).

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
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
STRATTEC SE… STRT 80.24 +3.00%
PATTERSON-U… PTEN 34.54 +2.98%