Marcial: LPS Thrives Amid Mortgage Malaise
The provider of mortgage processing services is seeing strong earnings growth as foreclosures rise, and Wall Street pros are bullish on its prospects
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For some niche players in the financial markets, the economic debacle and mortgage meltdown have been absolute boons. One big winner is little-known Lender Processing Services (LPS), whose otherwise mundane business of providing mortgage processing and default management services turned overnight into a golden goose. (LPS is not in the lending business.)
The stock of LPS has more than doubled in a year, to 41.94 a share on Nov. 24 from a 52-week low of 17.70 on Nov. 24, 2008. And the stock isn't done climbing as LPS continues to ratchet up revenues and earnings from all the mortgage and foreclosure problems that have hounded homeowners, banks, and mortgage lenders.