3 Reasons to Avoid OCFC and 1 Stock to Buy Instead

Since July 2025, OceanFirst Financial has been in a holding pattern, posting a small loss of 5% while floating around $17.86. The stock also fell short of the S&P 500’s 10.4% gain during that period.

Is now the time to buy OceanFirst Financial, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Do We Think OceanFirst Financial Will Underperform?

We're swiping left on OceanFirst Financial for now. Here are three reasons we avoid OCFC and a stock we'd rather own.

1. Net Interest Income Points to Soft Demand

While bank generate revenue from multiple sources, investors view net interest income as a cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of one-time fees.

OceanFirst Financial’s net interest income has grown at a 3.1% annualized rate over the last five years, much worse than the broader banking industry and in line with its total revenue. This was driven by its loan growth as its net interest margin, which represents how much a bank earns in relation to its outstanding loan book, declined throughout that period.

2. EPS Barely Growing

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

OceanFirst Financial’s weak 1.2% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable.

3. Projected TBVPS Growth Shows Limited Upside

Tangible book value per share (TBVPS) growth comes from a bank’s ability to profitably lend while maintaining prudent risk management and efficient operations.

Over the next 12 months, Consensus estimates call for OceanFirst Financial’s TBVPS to remain flat at roughly $19.43, a disappointing projection.

Final Judgment

OceanFirst Financial doesn’t pass our quality test. With its shares lagging the market recently, the stock trades at 0.6× forward P/B (or $17.86 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. Let us point you toward one of our top software and edge computing picks.

Stocks We Would Buy Instead of OceanFirst Financial

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