Ocwen Financial Corporation (OCN): Today's Featured Financial 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 Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Ocwen Financial Corporation fell 71 cents (-1.9%) to $36.64 on average volume. Throughout the day, 2.1 million shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $36.19-$37.90 after having opened the day at $37.38 as compared to the previous trading day's close of $37.35. Other companies within the Financial sector that declined today were: American Spectrum Realty ( AQQ), down 12.9%, Porter Bancorp ( PBIB), down 12.4%, Flagstar Bancorp ( FBC), down 12.2%, and Impac Mortgage Holdings ( IMH), down 11%.
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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 $5.1 billion and is part of the banking industry. The company has a P/E ratio of 41.5, above the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Ocwen Financial Corporation a buy, no analysts rate it a sell, and one rates 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, OptimumBank Holdings ( OPHC), up 37.3%, HMN Financial ( HMNF), up 29%, Plumas Bancorp ( PLBC), up 25.6%, and Jacksonville Bancorp Inc (FL ( JAXB), up 25.4%, were all gainers within the financial sector with SunTrust Banks ( STI) being today's featured financial sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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