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 down 0.3%. By the end of trading, Ocwen Financial Corporation fell $0.87 (-2.3%) to $36.35 on light volume. Throughout the day, 983,874 shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 1,761,600 shares. The stock ranged in price between $36.30-$37.44 after having opened the day at $37.13 as compared to the previous trading day's close of $37.22. Other companies within the Banking industry that declined today were: Hancock Holding Company ( HBHC), down 9.2%, Credit Suisse ( UOIL), down 7.8%, Grupo Financiero Santander Mexico SAB de CV ( BSMX), down 6.5% and Beneficial Mutual Bancorp ( BNCL), down 5.2%.
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Ocwen Financial Corporation, through its subsidiaries, engages in the servicing and origination of mortgage loans in the United States and internationally. Ocwen Financial Corporation has a market cap of $5.0 billion and is part of the financial sector. The company has a P/E ratio of 28.1, above the S&P 500 P/E ratio of 17.7. Shares are up 7.6% year to date as of the close of trading on Thursday.

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 growth in the company's net income has been quite unimpressive.

On the positive front, National Bank of Greece ( NBG), down 25.3%, Royal Bancshares of Pennsylvania ( RBPAA), down 9.5%, Porter Bancorp ( PBIB), down 9.2% and Oak Valley Bancorp ( OVLY), down 7.6%.

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