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Are Investors Undervaluing Comstock Resources (CRK) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.17 right now. For comparison, its industry sports an average P/E of 13.35. Over the past 52 weeks, CRK's Forward P/E has been as high as 67.90 and as low as 4.20, with a median of 7.93.

Another notable valuation metric for CRK is its P/B ratio of 1.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.91. Within the past 52 weeks, CRK's P/B has been as high as 1.86 and as low as -0.44, with a median of 1.12.

Finally, investors will want to recognize that CRK has a P/CF ratio of 3.23. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.33. Within the past 12 months, CRK's P/CF has been as high as 9.97 and as low as 1.79, with a median of 4.16.

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.


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