MoneyGram International, Inc. MGI recently collaborated with Uber Technologies, Inc. UBER in a bid to enable hassle-free digital transactions for individuals working at Uber. This promotional alliance has been primarily introduced in the United States, Canada, Australia and the U.K.
Per this deal, employees of Driver app, Uber Eats, Uber Freight and Uber Works are eligible for getting rebates on money transfers to their close ones across 200 countries and territories.
The partnership has been announced at an opportune time as the global economy is grappling with financial woes induced by the COVID-19 outbreak. It has become increasingly difficult for drivers and delivery couriers in delivering essential services amid this pandemic. Hence, the deal not only boosts MoneyGram’s digital business, it also bodes well for Uber employees extending support to their close ones during this challenging period.
Shares of this Zacks Rank #4 (Sell) company have gained 45.4% in a year against the industry’s decline of 21.1%.
The company has undertaken several strategic efforts to enhance its digital business. Last week, it tied up with E9Pay, one of the largest money transfer and payment fintech companies in Korea. Through this tie-up, MoneyGram is eying the Korean remittance market that is worth approximately $13.4 billion in annual remittance outflows, per the World Bank.
Furthermore, MoneyGram has also been making consistent efforts to enhance its digital services suite, backed by constant technological upgradations. In March of this year, the company unveiled that it is working with Google Cloud and Amazon Web Services (AWS) to set up a multi-cloud strategy for optimizing capability benefits. With its second year of multi-cloud strategy deployment to enhance flexibility, it should be noted that the same is also helping the company cut down on costs. Notably, these initiatives enabled customers to engage in digital transactions in over 70 countries.
We believe that such initiatives by MoneyGram are likely to boost its digital business, which in turn, will drive revenues in the days ahead. Though the top line suffered a setback in first-quarter 2020, we believe the company’s solid fundamentals will enable it bounce back in the near future.
Stocks to Consider
Some better-ranked finance stocks include Jefferies Financial Group Inc. JEF and Kemper Corporation KMPR, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jefferies Financial and Kemper Corporation have trailing four-quarter positive earnings surprise of 42.12% and 16.25%, on average, respectively.
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Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report
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Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
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