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 0.5%. By the end of trading, Ocwen Financial Corporation fell $2.97 (-7.7%) to $35.60 on heavy volume. Throughout the day, 7.8 million shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $34.35-$39.19 after having opened the day at $38.62 as compared to the previous trading day's close of $38.57. Other companies within the Banking industry that declined today were: Porter Bancorp ( PBIB), down 21.8%, National Bank of Greece ( NBG), down 11.4%, First Financial Service Corporation ( FFKY), down 9.4%, and Colony Bankcorp ( CBAN), down 7.8%.
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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 $5.24 billion and is part of the financial sector. The company has a P/E ratio of 53.2, above the S&P 500 P/E ratio of 17.7. Shares are up 168% year to date as of the close of trading on Wednesday. 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 positive front, Crescent Financial ( CRFN), up 21.3%, OptimumBank Holdings ( OPHC), up 15.7%, NewBridge Bancorp ( NBBC), up 12.7%, and Emclaire Financial Corporation ( EMCF), up 10%, were all gainers within the banking industry with Wells Fargo ( WFC) 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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Closing Bell: Ocwen Financial Loses Half Its Value; Nasdaq Sets New Record