Data from Best Stocks Now App Performance

Over the last 10 years, OCN has delivered 35% per year while the market has delivered 5% to investors. Over the last five years, OCN has delivered 67% per year while the market has delivered 6%. Over the last three years, OCN has delivered 82% per year while the market has delivered only 15% during the same time. Over the last 12 months, OCN is up 117% with the market up 18%.

Who has been putting his name on this stock for years? That's right -- you can google my name and find all of the articles I have written and the radio minutes I have recorded about OCN. You can even take a look at my newsletter and see where the stock has been in my portfolios overtime.

Even better, you could download and subscribe to my app, The Best Stocks Now and find all material I've produced on OCN since 2011.

If you do it, it's not bragging. OCN has great performance in earnings and profits and sales. And that is all about management knowing it has to take care of business for its customers - and shareholders.

Today, I give the company a performance and momentum grade of A+!

Valuation: But what about value? OCN is currently trading at ten times forward earnings. It is expected to grow those earnings by 25% per year over the next five years. OCN also has a very favorable PEG ratio of 0.39.

Data from Best Stocks Now App

Now we need to apply an appropriate multiple to those earnings to project a five-year target price. This is the hardest part of the equation. There are no set rules to go by here. Instead, we must weigh the following factors in determining the multiple:
  • The current forward average PE ratio of the 3,600 stocks that I track is 18.4
  • The current forward PE ratio of OCN is 9.81.

Next I apply a very conservative multiple towards the potential future earnings of the shares. When I do this I get a five-year target price of $105 per share. The stock passes both my valuation and performance tests.

Stock chart: Is it too much to ask that a stock have a good chart on top of good performance and valuation? This is my final test. I want the best management, the best performance. I want to buy the stock at a reasonable price. Lastly, I want a good, healthy stock chart. This is all I ask.

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