Ocwen Financial Corporation (OCN): Today's Featured Banking Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Ocwen Financial Corporation ( OCN) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Ocwen Financial Corporation fell 91 cents (-3.6%) to $24.38 on heavy volume. Throughout the day, 2.7 million shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $24.34-$25.30 after having opened the day at $25.30 as compared to the previous trading day's close of $25.29. Other companies within the Banking industry that declined today were: Central Federal ( CFBK), down 31.5%, Anchor Bancorp ( ANCB), down 9.8%, Credit Suisse ( DWTI), down 5.5%, and Credit Suisse ( DSLV), down 5.3%.

Ocwen Financial Corporation, through its subsidiaries, provides residential and commercial mortgage loan servicing, special servicing, and asset management services in the United States and internationally. Ocwen Financial Corporation has a market cap of $3.15 billion and is part of the financial sector. The company has a P/E ratio of 34.2, above the average banking industry P/E ratio of 32.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 72.2% year to date as of the close of trading on Monday. Currently there are five analysts that rate Ocwen Financial Corporation a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Ocwen Financial Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, Ohio Legacy Corporation ( OLCB), up 17.6%, Credit Suisse ( UOIL), up 13.8%, Mackinac Financial Corporation ( MFNC), up 13%, and Atlantic Coast Financial ( ACFC), up 9.3%, were all gainers within the banking industry with Deutsche Bank ( DB) being today's featured banking industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).
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