Back to top

Analyst Blog

In an effort to move a step closer to providing its customers’ assistance at times of distress, Moneygram International Inc. (MGI - Analyst Report) and UnionPay recently signed an agreement in China.

Per the agreement, MoneyGram will provide “emergency cash services” to the credit card cardholders of UnionPay under the circumstances of the card not working or being stolen or misplaced. The company is liable to provide assistance up to $5,000.

284,000 of MoneyGram’s locations will be accessible to the credit card cardholders of UnionPay so that they can receive the money. Also, the cardholders need to register with the services of MoneyGram. The services will be made available by the company in systematic phases.

Currently, MoneyGram is entering into numerous partnerships, renewing previous contracts and signing agreements to expand the reach of its money transfer services on a wider scale. Recently, MoneyGram renewed its contract with Vietcombank and signed an agreement with Banco Ganadero.

These initiatives have been driving its shares upward. To date, it has gained 7.1% (or $1.06) since the beginning of the third quarter, to close at $16.08 yesterday.

The company is focused on growing its money transfer business by bringing in more customers to use this self-service facility. Overall, MoneyGram has a global network of more than 267,000 agent locations covering about 192 countries, which primarily include retailers, international post offices and financial institutions. The service enables a customer to transfer any amount of money from across the world in minutes. It operates around the clock.

Western Union Co. (WU - Analyst Report), MoneyGram’s closest competitor, has been equally proactive on these lines and is posing a stiff competition to MoneyGram. The shares of Western Union have been increasing at a constant rate as well. Its shares too have gained 2.5% (or 43 cents) since the beginning of the third quarter to close at $17.43 yesterday.

Both companies hold a Zacks #3 Rank that translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the shares of both MoneyGram and Western Union.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

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 Zacks.com. 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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%