Shares of Ocwen Financial Corp. (OCN - Free Report) crafted a new 52-week high, touching $42.97 in the first hour of the trading session on May 10, 2013. The closing price of this financial holding company represents a solid year-to-date return of 18.60%. The average trading volume over the last 3 months was 1.9 million shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left given its strong estimate revisions over the last 60 days and expected year-over-year earnings growth of 234.15% for 2013.
On May 2, 2013, Ocwen reported its first-quarter 2013 results with adjusted earnings of 64 cents per share, rising substantially from the year-ago earnings 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 closed the deal to acquire Genworth Financial Home Equity Access, Inc. from Genworth Financial, Inc. (GNW - Free Report) for approximately $22 million in cash. In the same month, Ocwen also completed the acquisition of $84.6 billion worth of Fannie Mae mortgage servicing rights from Ally Bank.
In Feb 2013, Ocwen acquired Residential Capital LLC’s MSRs in collaboration with Walter Investment Management Corp. (WAC - Free Report) . The company shelled out $2.1 billion for the deal, subject to post-closing adjustments.
Estimate Revisions Show Potency
Over the last 60 days, 1 out of 4 estimates for 2013 has been revised upward, lifting the Zacks Consensus Estimate by 7.0% to $4.74 per share. For 2014, 1 out of 4 estimates moved higher over the same time frame, helping the Zacks Consensus Estimate advance 3.2% to $5.44 per share.
Ellington Financial LLC (EFC - Free Report) is a better performing financial stock with a Zacks Rank #1 (Strong Buy).