Momentum Stock Watch: Ocwen Financial Corp. (OCN)

Company Profile:

Ocwen Financial Corporation, a financial services holding company, engages in servicing and origination of mortgage loans in the United States. Its Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate. This segments residential servicing portfolio includes conventional, government insured, and non-agency loans. The companys Lending segment is involved in originating and purchasing conventional and government-insured residential forward and reverse mortgage loans primarily through its correspondent lending arrangements, broker relationships, and directly with mortgage customers. Ocwen Financial Corporation was founded in 1988 and is headquartered in Atlanta, Georgia.

Recent News:

Wall Street analysts are estimating that Ocwen Financial Corporation will report earnings of $-0.34 per share for the current fiscal quarter. The company is expected to release the quarterly report on or around 2016-04-12.

For the most recent quarter, Ocwen Financial Corporation posted EPS of $-0.53 for the fiscal quarter which ended on 2015-09-30.

CEO Ron Faris continued to emphasize that Ocwen is on track to keep executing on its broader turnaround strategy. “Our asset sale strategy has succeeded in generating proceeds and gains for the company,” Faris said, “enabling us to reduce leverage and focus on simplifying our operations.”

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

OCN’s strengths can be seen in its strong efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 50.14. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Ocwen Financial Corp. (OCN) a BUY.