We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MoneyGram Rides on Transaction Growth in Its Digital Business
Read MoreHide Full Article
MoneyGram International, Inc. is well-positioned to benefit from its Direct-to-Consumer digital business, evident from improved transaction growth of the business.
On a year-to-date basis, the company’s digital platform — MoneyGram Online — registered a year-over-year surge of around 60% in its transaction growth. The huge uptick compares favorably with a 39% rise in transaction growth reported in fourth-quarter 2019.
Improved overall transaction growth can be attributed to strength in the company’s U.S- outbound and international transactions. While revenues improved 70% year over year for international transactions on a year-to-date basis, transactions soared 116% year over year. Similarly, U.S.-outbound recorded transaction growth of 101% year over year and revenue growth of 37% year over year on a year-to-date basis.
Such strength in digital transactions comes as a relief in the dismal period of the coronavirus pandemic as people around the globe will have easier access to the company’s digital services in a situation when they have been temporarily restricted to their houses.
Initiatives for Boosting Digital Business
The company seems to be in a bid to expand its digital business on partnerships. For expanding its global network and getting access to the leading consumer-centric capabilities, MoneyGram partnered with LuLu Money in January 2020. In the same month, it tied up with EbixCash as part of its constant investments to boost its digital business.
MoneyGram has also been making consistent efforts to enhance its digital services suite, backed by constant technological upgradations. Such initiatives enabled customers to engage in digital transactions in over 67 countries. As a result, digital transactions now account for 23% of the total money transfer transactions.
We believe that such a strong digital business is likely to benefit the company’s Global Funds Transfer segment, which offers money transfer services through digital networks. The segment accounted for 92.1% of MoneyGram’s total revenues in 2019.
Shares of the Zacks Rank #2 (Buy) company have lost 37.2% on a year-to-date basis, underperforming the industry’s decline of 33.6%. Nevertheless, we believe that the company’s strong digital business, attributable to its strategic initiatives, is likely to drive shares going forward.
All three companies surpassed estimates in the last reported quarters by 20%, 18.92% and 4.17%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
MoneyGram Rides on Transaction Growth in Its Digital Business
MoneyGram International, Inc. is well-positioned to benefit from its Direct-to-Consumer digital business, evident from improved transaction growth of the business.
On a year-to-date basis, the company’s digital platform — MoneyGram Online — registered a year-over-year surge of around 60% in its transaction growth. The huge uptick compares favorably with a 39% rise in transaction growth reported in fourth-quarter 2019.
Improved overall transaction growth can be attributed to strength in the company’s U.S- outbound and international transactions. While revenues improved 70% year over year for international transactions on a year-to-date basis, transactions soared 116% year over year. Similarly, U.S.-outbound recorded transaction growth of 101% year over year and revenue growth of 37% year over year on a year-to-date basis.
Such strength in digital transactions comes as a relief in the dismal period of the coronavirus pandemic as people around the globe will have easier access to the company’s digital services in a situation when they have been temporarily restricted to their houses.
Initiatives for Boosting Digital Business
The company seems to be in a bid to expand its digital business on partnerships. For expanding its global network and getting access to the leading consumer-centric capabilities, MoneyGram partnered with LuLu Money in January 2020. In the same month, it tied up with EbixCash as part of its constant investments to boost its digital business.
MoneyGram has also been making consistent efforts to enhance its digital services suite, backed by constant technological upgradations. Such initiatives enabled customers to engage in digital transactions in over 67 countries. As a result, digital transactions now account for 23% of the total money transfer transactions.
We believe that such a strong digital business is likely to benefit the company’s Global Funds Transfer segment, which offers money transfer services through digital networks. The segment accounted for 92.1% of MoneyGram’s total revenues in 2019.
Shares of the Zacks Rank #2 (Buy) company have lost 37.2% on a year-to-date basis, underperforming the industry’s decline of 33.6%. Nevertheless, we believe that the company’s strong digital business, attributable to its strategic initiatives, is likely to drive shares going forward.
Other Stocks to Consider
Some other top-ranked stocks in the same space are PRA Group, Inc. (PRAA - Free Report) , Houlihan Lokey, Inc. (HLI - Free Report) and Moody's Corporation (MCO - Free Report) . While PRA Group and Houlihan Lokey currently sport a Zacks Rank #1 (Strong Buy), Moody’s carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
All three companies surpassed estimates in the last reported quarters by 20%, 18.92% and 4.17%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>