Ocwen Financial Corp (OCN), Home Loan Servicing Solutions Ltd (HLSS), Washington Federal Inc. (WFSL): Three Stocks With Steady Growth Prospects

Currently, the firm is focused on increasing its asset base by acquiring more mortgage servicing assets. Last quarter, it completed its third flow purchase from Ocwen Financial Corp (NYSE:OCN) since our inception, two years ago, adding $15.9 billion of UPB to its servicing portfolio, which now amounts to $92.5 billion. As Ocwen has benefited from these sales, Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) expects to continue to purchase such assets and expand its servicing portfolio. Furthermore, the company has focused extra efforts in receiving the necessary permissions to become named servicers for the securitizations where it already own Rights to MSRs and the associated servicing advances. If consent was attained, revenue could largely sore.

Finally, last quarter’s financial results cannot be overlooked. Revenue grew by 1,296% to $45 million, mainly on the back of interest income, and earnings rose 42%, to $0.44 per diluted share, above the analyst consensus estimate. This has led to an expected revenue growth of 278% and earnings increase by 18% for 2013. With a history beating consensus estimates, it would not be a surprise if this were the case for the upcoming quarters. I’d say buy and hold, the outlook is looking good.

Bottom line

The above described financial companies offer compelling investment opportunities, especially for long-term stockholders. Particularly, Ocwen Financial Corp (NYSE:OCN)’s prospects looks very promising. Just like Home Loan Servicing Solutions Ltd (NASDAQ:HLSS), I believe that this firm is poised to grow and, therefore, comprises a buy and hold case.

The article 3 Stocks With Steady Growth Prospects originally appeared on Fool.com and is written by Victor Selva.

Victor Selva has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Victor is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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