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

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 higher today making it today's featured banking winner. The industry as a whole closed the day up 0.4%. By the end of trading, Ocwen Financial Corporation rose $1.12 (3.1%) to $36.82 on average volume. Throughout the day, 2.3 million shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $35.86-$36.83 after having opened the day at $35.88 as compared to the previous trading day's close of $35.70. Other companies within the Banking industry that increased today were: PremierWest Bancorp ( PRWT), up 17.9%, VelocityShares 3x Inverse Natural Gas ETN ( DGAZ), up 10.8%, Riverview Bancorp ( RVSB), up 10.5%, and Jefferson ( JFBI), up 9.9%.
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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 $4.87 billion and is part of the financial sector. The company has a P/E ratio of 49.4, below the average banking industry P/E ratio of 50.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 146.5% year to date as of the close of trading on Friday. Currently there are four analysts that rate Ocwen Financial Corporation a buy, no analysts rate it a sell, and two 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 negative front, Village Bank and Trust Financial Corporatio ( VBFC), down 11.5%, OptimumBank Holdings ( OPHC), down 8%, VelocityShares 3x Long Brent Crude ETN ( UOIL), down 6.3%, and Guaranty Federal ( GFED), down 5.7%, were all laggards within the banking industry with SunTrust Banks ( STI) being today's banking industry laggard.

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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