Shares of Lender Processing Services, Inc (LPS) hit a 52-week high of $35.60 during the trading session on Dec 9. However, the stock closed the trading session at $35.36, which reflects a solid year-to-date return of 38.3%. The average trading volume aggregated 718,734 shares.
Lender Processing’s technology-driven end-to-end solutions for the mortgage and real estate industries as well as contract renewals are likely to aid in generating business growth.
Lender Processing is well positioned to enhance the mortgage value chain and deliver innovative technology, data and expertise to its clients. Going forward, the rapidly growing mortgage landscape continues to create new requirements for its clients.
The unique combination of scale, know-how and innovation continues to position Lender Processing as a leader in technology-driven solutions for the evolving mortgage industry.
Additionally, Lender Processing maintains a balanced operating model designed to provide a natural hedge during fluctuations in the real estate market. Given the scope of the services provided, the company stands to maintain revenue strength at both ends of the mortgage cycle. While the loan facilitation services along with various data and analytics segments are expected to generate higher revenues when interest rates are low and the residential housing market is strong, the company’s default management services are positioned to boost revenues when the residential real estate market is particularly weak and foreclosures are numerous.
Over the last 30 days, earnings estimates did not have any upward or downward revisions for 2013 and 2014. Although there is a lacuna of estimate revisions, we would rather add a word of caution for this Zacks Rank #5 (Strong Sell) stock.
Other Stocks to Consider
Other stocks that look promising and are worth a look now include Global Payments Inc (GPN), Higher One Holdings Inc (ONE) and ZOOM Technologies Inc (ZOOM). All these stocks carry a Zacks Rank #2 (Buy).