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Ocwen Crafts New 52-Week High

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Shares of Ocwen Financial Corp. reached a new 52-week high, touching $46.79 in the second half of the trading session on Jun 11, 2013. The closing price of this financial holding company reflects a solid year-to-date return of 26.9%. The trading volume for the session was 2.7 million shares versus a 3-month average volume of 2.4 million shares.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its expected year-over-year earnings growth of 204.7% for 2013.

Growth Drivers

On May 2, 2013, Ocwen reported first-quarter 2013 results with adjusted earnings of 64 cents per share up from the year-ago number of 25 cents. On a year-over-year basis, the results benefited from impressive top-line growth and a rise in interest income, partially offset by increased operating and interest expenses.

Moreover, in Apr 2013, Ocwen acquired Genworth Financial Home Equity Access, Inc. from Genworth Financial, Inc. (GNW - Free Report) with approximately $22 million in cash. In the same month, Ocwen completed the acquisition of $84.6 billion worth of Fannie Mae mortgage servicing rights from Ally Bank.

In Feb 2013, the company acquired Residential Capital LLC’s MSRs in collaboration with Walter Investment Management Corp. . The company shelled out $2.1 billion for the deal, subject to post-closing adjustments.

Estimate Revisions

Over the last 30 days, the Zacks Consensus Estimate for 2013 fell 1.8% to $4.33 per share but it rose 1.2% to $5.22 for 2014.

Ellington Financial LLC (EFC - Free Report) is a better performing financial stock with a Zacks Rank #1 (Strong Buy).

In-Depth Zacks Research for the Tickers Above

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