Back to top

Image: Bigstock

Is Comstock Resources (CRK) Stock Undervalued Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Comstock Resources (CRK - Free Report) . CRK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.07. This compares to its industry's average Forward P/E of 7.81. Over the last 12 months, CRK's Forward P/E has been as high as 9.55 and as low as 3.93, with a median of 6.79.

Investors should also recognize that CRK has a P/B ratio of 2.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.80. Over the past year, CRK's P/B has been as high as 2.68 and as low as 0.80, with a median of 1.14.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRK has a P/S ratio of 2.02. This compares to its industry's average P/S of 3.09.

Finally, investors will want to recognize that CRK has a P/CF ratio of 21.58. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 31.01. Over the past year, CRK's P/CF has been as high as 23.27 and as low as 2.62, with a median of 5.76.

Value investors will likely look at more than just these metrics, but the above data helps show that Comstock Resources is likely undervalued currently. And when considering the strength of its earnings outlook, CRK sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Comstock Resources, Inc. (CRK) - free report >>

Published in