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 87 cents (-2.5%) to $34.41 on heavy volume. Throughout the day, five million shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $33.22-$34.60 after having opened the day at $34.50 as compared to the previous trading day's close of $35.28. Other companies within the Banking industry that declined today were: Credit Suisse ( DGAZ), down 12.1%, Porter Bancorp ( PBIB), down 10.1%, Harleysville Savings Financial Corporation ( HARL), down 9.7%, and First Financial Service Corporation ( FFKY), down 8.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $4.83 billion and is part of the financial sector. The company has a P/E ratio of 39.3, above the S&P 500 P/E ratio of 17.7. Shares are up 147.1% year to date as of the close of trading on Tuesday. 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. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, MSB Financial Corporation ( MSBF), up 13.3%, Southern Connecticut Bancorp ( SSE), up 8.6%, Citigroup ( C), up 6.3%, and Summit Financial Group ( SMMF), up 5.8%, were all gainers within the banking industry with JPMorgan Chase ( JPM) 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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

Wall Street Ends Lower as Crude Slumps, French Election Looms

Stocks Mostly Lower as French Election Raises Uncertainty, Crude Slides Below $50

Stocks Decline as French Election Raises Uncertainty

American Express Sparks Rally on Wall Street, Treasury Secretary's Tax Comments Light a Fire

Closing Bell: Ocwen Financial Loses Half Its Value; Nasdaq Sets New Record