Ocwen Financial Corporation (OCN): Today's Featured Banking Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.2%. By the end of trading, Ocwen Financial Corporation fell $1.32 (-2.6%) to $49.13 on heavy volume. Throughout the day, 2,906,848 shares of Ocwen Financial Corporation exchanged hands as compared to its average daily volume of 1,914,400 shares. The stock ranged in price between $48.81-$52.00 after having opened the day at $51.30 as compared to the previous trading day's close of $50.45. Other companies within the Banking industry that declined today were: Credit Suisse ( DGAZ), down 13.2%, Bank Bradesco ( BBDO), down 7.3%, Cardinal Financial ( CFNL), down 5.4% and Broadway Financial ( BYFC), down 5.3%.

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 $6.8 billion and is part of the financial sector. The company has a P/E ratio of 28.7, above the S&P 500 P/E ratio of 17.7. Shares are down 9.0% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Ocwen Financial Corporation a buy, no analysts rate it a sell, and 2 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, impressive record of earnings per share growth, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, North Valley Bancorp ( NOVB), up 28.7%, Credit Suisse ( UGAZ), up 13.4%, Pinnacle Financial Partners ( PNFP), up 7.3% and Southwest Bancorp ( OKSB), up 6.9% , were all gainers within the banking industry with State Street ( STT) 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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