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 $0.74 (-1.6%) to $44.85 on average volume. Throughout the day, 2,017,259 shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 2,427,200 shares. The stock ranged in price between $44.37-$46.32 after having opened the day at $46.05 as compared to the previous trading day's close of $45.59. Other companies within the Banking industry that declined today were: Credit Suisse ( DGAZ), down 11.0%, Cordia Bancorp ( BVA), down 9.8%, Village Bank and Trust Financial Corporatio ( VBFC), down 9.7% and First Federal of Northern Michigan Bancorp ( FFNM), down 7.3%.
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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 $6.2 billion and is part of the financial sector. The company has a P/E ratio of 30.9, above the S&P 500 P/E ratio of 17.7. Shares are up 31.8% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Ocwen Financial Corporation a buy, no analysts rate it a sell, and none 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 growth in the company's net income has been quite unimpressive.

On the positive front, Hampton Roads Bankshares ( HMPR), down 13.1%, Emclaire Financial Corporation ( EMCF), down 12.5%, Capital City Bank Group ( CCBG), down 9.2% and Riverview Bancorp ( RVSB), down 6.5% , 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).

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