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 was unchanged today. By the end of trading, Ocwen Financial Corporation fell 76 cents (-2.1%) to $34.52 on light volume. Throughout the day, 1.9 million shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $34.34-$35.43 after having opened the day at $35.43 as compared to the previous trading day's close of $35.28. Other companies within the Banking industry that declined today were: Porter Bancorp ( PBIB), down 9.6%, First Federal of Northern Michigan Bancorp ( FFNM), down 8.2%, National Bank of Greece ( NBG), down 8.1%, and First Financial Service Corporation ( FFKY), down 6.8%.
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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 $4.78 billion and is part of the financial sector. The company has a P/E ratio of 38.9, above the S&P 500 P/E ratio of 17.7. Shares are up 144.3% 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 buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Farmers Capital Bank Corporation ( FFKT), up 10.9%, NewBridge Bancorp ( NBBC), up 6.9%, Citizens First Corporation ( CZFC), up 6.8%, and Camco Financial ( CAFI), up 5.1%, were all gainers within the banking industry with UBS ( UBS) 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