Trader’s Buzzers: Ocwen Financial Corporation (NYSE:OCN)

Crude oil’s brief bump following Fed Chair Powell’s dovish interest rate remarks failed to hold up, as January WTI crude closed -2.5% to $50.29/bbl, the lowest settlement in nearly 14 months; Brent -2.4% to $58.76/bbl.

U.S. crude inventories rose for the 10th week in a row, jumping by a much larger than forecast 3.6M barrels to 450.5M barrels – the highest since Thanksgiving week in 2017 – even as U.S. refinery activity climbed three percentage points to a 96% utilization rate.

WTI has plunged 34% since hitting a multiyear high of $76.41/bbl a barrel in early October.

“Crude not being able to rally with risk-on [sentiment] across the board and U.S. dollar weakness in all asset classes says a lot,” says Tariq Zahir of Tyche Capital Advisors, adding that “a break of $50 is inevitable” for WTI.

Brent crude failed to maintain an early boost from a supply outage in the North Sea.

“The unequivocal answer is [digital assets will survive],” Sprecher said earlier this week at the Consensus: Invest conference in New York, it was first reported by CNBC. “As an exchange operator, it’s not our objective to opine on prices.”

Bitcoin has been struggling recently, losing 40% of its value in just two weeks, as a civil war in rival cryptocurrency bitcoin cash and fears much-anticipated institutional investment will fail to materialize weigh on bitcoin and cryptocurrency investors.

Bitcoin’s woes have caused many to doubt the future of cryptocurrencies, though others are confident bitcoin and its peers will soldier on, with New York Stock Exchange (NYSE) chairman Jeff Sprecher among the more optimistic.

Bitcoin has over the last two days climbed back over the psychological $4,000 mark after falling as low as $3,600 last week amid a rout that has wiped billions from the market capitalizations of the world’s biggest cryptocurrencies, including the likes of Ripple’s XRP and Ethereum’s ether.

The bitcoin price has fallen some 80% so far this year, with a sell-off this month sparked by rival cryptocurrency, bitcoin cash, splitting in two due to developers and miners failing to reach an agreement over its future.

Shares of Ocwen Financial Corporation (NYSE:OCN) flaunted a rapid change of -0.93% to reach at $2.13 in the last hour of Wednesday’s trading session. The company has experienced volume of 1,517,479 shares while on average the company has a capacity of trading 1.68M share.

Ocwen Financial Corporation (OCN) holds the market capitalization of $294.13M along with 138.09M outstanding shares. The stock price is moving -0.47% off from the highest level of twelve months and -55.99% above from twelve months low. For the stock, price target value has been calculated at $4.00.

Ocwen Financial Corporation has shown weekly downbeat performance of -6.99%. Its six months performance -51.26% indicated a bearish movement while its yearly performance reflected a negative trend of -31.95%. Year-to-date (YTD) performance of the stock illustrate downbeat trend of -31.95%. The company’s price sits -38.31% below from its 50-day moving average of $3.18 and -46.98% below from the stock’s 200-day moving average of $3.97. The company has Relative Strength Index (RSI 14) of 19.81 along with Average True Range (ATR 14) of 0.21. Its weekly and monthly volatility is 7.22%, 7.91% respectively. The company’s beta value is at 1.30.

What is PEG Ratio?

PEG ratio or Price/Earnings-Growth ratio is an attempt to normalize the P/E ratio with the expected earnings growth rate of the company.

The idea behind the PEG ratio for stocks is quite simple:

A low P/E ratio can be justified if the future expected earnings growth is low. A fast growing company on the other hand is able to command a higher price to earnings multiple for its stock. To get more accurate idea of the relative valuation of a company, we need to consider the P/E ratio in conjunction with the future earnings per share growth rate.

WHY IT MATTERS:

The PEG ratio acts as a measure of value that takes into account future growth. Using this metric, investors can gauge whether high-growth stocks may be undervalued, even if they don’t appear so with the more common P/E ratio.

Earnings growth expectations are completely unreliable. Any use of the formula is only as good as the numbers that are fed into it as inputs. Any expected earnings growth in the future is just an expectation, and they vary wildly between different analysts. Even if there is a concensus, the future generally turns out to be different than planned. There is competitive changes, loss of market power, product substitutions, management missteps, etc, that we have no way of knowing today.

Typically P/E ratios are backward looking while the earnings growth rate is a forward looking metric. Future P/E ratio will be different than the one we use today. You could project a future P/E ratio if you wish, but this will introduce further uncertainity in the calculations. Still, many investors are fond of using the concept of Forward P/E and Forward PEG ratio. I strongly advise against this.

Negative PEG Ratio Meaning

A negative PEG ratio does not imply that the stock is a bad investment. It just means that you need to consider other ways of looking at the stock before you can judge if this is a good investment or not.

Is It Overvalued? Look at the PEG Ratio

Ocwen Financial Corporation (NYSE:OCN) currently has a PEG ratio of N/A where as its P/E ratio is N/A. The company’s price to sales ratio for trailing twelve months is 0.29 and price to book ratio for most recent quarter is 0.51, whereas price to cash per share for the most recent quarter is 1.15. OCN’s price to free cash flow for trailing twelve months is 1.00. Its quick ratio for most recent quarter is N/A along with current ratio for most recent quarter of N/A. Total debt to equity ratio of the company for most recent quarter is 13.06 whereas long term debt to equity ratio for most recent quarter is 13.06. Ocwen Financial Corporation has a Return on Assets of -1.30%. The company currently has a Return on Equity of -19.30% and Return on Investment of 4.00%.

Blake Diggles

I am a Blake Diggles, today the market condition depends on financial and financial services, as a financial adviser and an economist, I have an experience in the services industry for last 10 year giving the challenging world best reviews that how news affects the financial market. Investing in the market here we are the advisers, active day spenders. Majority of my time is analyzing the market condition in the financial sector and watching day to day market reviews and news, I have a vast experience good communication skill great confidence and knowledge. Previously working with the good reputed financial companies makes me a good financial adviser.