Fortress Investment Group, Carpenter Technology, Ocwen Financial, BlackRockand JPMorgan Chase highlighted as Zacks Bull and Bear of the Day
CHICAGO, Feb. 13, 2014 /PRNewswire/ -- Zacks Equity Research highlights Fortress Investment Group LLC (NYSE:FIG-Free Report) as the Bull of the Day and Carpenter Technology Corporation (NYSE:CRS-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onOcwen Financial Corp. (NYSE:OCN-Free Report), BlackRock, Inc. (NYSE:BLK-Free Report) and JPMorgan Chase & Co. (NYSE:JPM-Free Report).
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Here is a synopsis of all five stocks:
Investment Management industry continues its uptrend with strong results for Q4 2013. Now may be a good time to consider a Zacks Rank # 1 (Strong Buy) stock from this top rated industry.
Fortress Investment Group LLC (NYSE:FIG-Free Report) is a diversified global investment management firm. Fortress has businesses across a range of investment strategies - private equity, credit, liquid markets and traditional asset management. It has over 1,500 institutional investors and private clients worldwide.
FIG reported its third quarter earnings on October 31, 2013. Distributable earnings were $0.13 per share and $0.64 a share on a year-to-date basis, well above full-year results in both 2011 and 2012. Thus, the company appears to be on track to deliver its strongest year of distributable earnings since 2007.
AUM increased to $58 billion--an all-time high. All segments delivered strong performances, resulting in a surge in management fees and incentive income by double- and triple-digits, respectively, over the last year.
Net income (GAAP basis) surged to $101 million for the third quarter of 2013 (up from $7.0 million in the year-ago quarter) or $0.12 per diluted Class A share. Total revenue increased 27% year over year to $232 million.
Carpenter Technology Corporation (NYSE:CRS-Free Report)is a manufacturer and distributor of specialty alloys, including stainless steel and titanium, and various engineered products made from metallic and ceramic materials.
These products are used in planes, cars and trucks, electronic equipment, medical devices, industrial fittings, sporting goods, and oil and gas exploration and processing.
On January 31, 2014, CRS reported its quarterly results. Net income came in at $29.5 million or $0.55 per diluted share, down from $33.0 million or $0.62 per diluted share in the same quarter last year.
Net sales for the quarter were $503.5 million, down $16.1 million from the same quarter last year, on 8% higher shipments. According to the management, the decline can be attributed primarily to the continued soft demand in Aerospace and Energy.
Analysts have revised their estimates downwards in the past few weeks. The Zacks Consensus Estimate for the current quarter has gone down from $0.80 per share, 30 days ago to $0.70 per share at present. For full year 2014 too, the estimate has gone down from $4.12 per share to $3.80 per share.
Additional content:
Ocwen Shares Dip on Expected Litigation
Shares of Ocwen Financial Corp. (NYSE:OCN-Free Report) tumbled on Tuesday, after Financial Times reported the possibility of legal action against the mortgage servicer by a group of institutional investors. Ocwen's stock price fell 9.03% and came in at $38.07.
Investors are contemplating filing a legal case against Ocwen over its mortgage servicing practices and loan modifications. They claim that the non-bank mortgage servicer's practices have affected the performance of securities purchased by the investors.
The investors' group including Pimco and BlackRock, Inc. (NYSE:BLK-Free Report) is being represented by the law firm – Gibbs & Bruns. Notably, this law firm has represented similar cases against major banks including JPMorgan Chase & Co. (NYSE:JPM-Free Report) and Bank of America.
Mortgage servicers' role is to accumulate payments from homeowners and allocate those to investors who own the loans through mortgage securities. Collectively, over the past two years, servicing rights over $1 trillion in mortgages have changed hands. Therefore, some specialty mortgage servicers have been thriving, which has raised doubt over the servicers' capabilities to service such loans.
Ocwen is facing increased scrutiny over its practices after it announced a $2.1 billion settlement with the Consumer Financial Protection Bureau (CFPB) and other regulators, along with 49 states and the District of Columbia in Dec 2013.
As per the allegations, Ocwen used deceptive and unfair means while working with borrowers who were delinquent and underwater. The company was accused of misrepresenting facts while filing foreclosure documents, charging unjustified fees for default-related services and forcing borrowers to buy unnecessary insurance policies, among others.
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