Mastercard Incorporated (MA Quick QuoteMA - Free Report) recently collaborated with Further Ventures to aid in developing the fintech infrastructure in the UAE and the MENA region. Further Ventures, based in Abu Dhabi, is a venture capital firm aimed at supporting innovative startups from the ideation to the exit stage. This will help MA to tap into the opportunities in the growing fintech space of the MENA region.

Mastercard’s aim of infusing greater digitization in the MENA region is also reflected by its partnerships with financial institutions. On Dec 13, 2023, MA partnered with I&M Bank Uganda to transform the banking and payment experience of customers. This move will result in improved payment volumes, directly translating to higher revenues in the future.

Mastercard will aid the fund with its advanced payment solutions, technologies, and platforms. This will help the company achieve its objective of bringing 50 micro, small and medium enterprises globally by 2025 to the digital economy. Moreover, MA will also initiate an investment for the fund’s success. As fintech companies thrive as a result of proper funding, MA would benefit from increased digitization and improved possibilities of penetrating the market as a payment processor.

Further Ventures fund is backed by ADQ with $200 million in funds. The purpose of this fund is to invest in ventures building futuristic financial infrastructure. This fund invests in ventures ranging from SME Finance and virtual asset payment products to blockchain-based solutions. Per an industry report by Magnitt, MENA startups raised a whopping $643 million in late-stage funding in the first half of 2023, overtaking the global numbers. Collaborating with this fund is a time-opportune move for Mastercard, as MA will be able to leverage investment opportunities in the region and help digitize the economies.

Shares of Mastercard have gained 20.4% in the year-to-date period compared with the industry’s 19.7% growth. MA currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the Business Services space are Limbach Holdings, Inc. (LMB Quick QuoteLMB - Free Report) , The Brink's Company (BCO Quick QuoteBCO - Free Report) and FTI Consulting, Inc. (FCN Quick QuoteFCN - Free Report) . While Limbach sports a Zacks Rank #1 (Strong Buy), Brink’s and FTI Consulting carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Limbach outpaced estimates in each of the last four quarters, the average surprise being 92.1%. The Zacks Consensus Estimate for LMB’s 2023 earnings is pegged at $1.75 per share, which indicates an increase of nearly three-fold from the year-ago reported figure. The consensus mark for revenues suggests growth of 1.6% from the year-ago reported number. The consensus mark for LMB’s 2023 earnings has moved 28.7% north in the past 60 days.

Brink’s earnings outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.6%. The Zacks Consensus Estimate for BCO’s 2023 earnings suggests an improvement of 13.7% from the year-ago reported figure. The consensus mark for revenues suggests growth of 7.5% from the year-ago reported number. The consensus mark for BCO’s 2023 earnings has moved 0.1% north in the past 60 days.

The bottom line of FTI Consulting outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 8.5%. The Zacks Consensus Estimate for FCN’s 2023 earnings suggests an improvement of 3.4% from the year-ago reported figure. The consensus mark for revenues suggests growth of 12.1% from the year-ago actual. The consensus mark for FCN’s 2023 earnings has moved 3.9% north in the past 60 days.

Shares of Limbach, Brink’s and FTI Consulting have gained 294.7%, 58.3% and 33.6%, respectively, in the past year.