Is Comstock Resources (CRK) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Comstock Resources (CRK). CRK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 2.52, while its industry has an average P/E of 4.93. Over the past 52 weeks, CRK's Forward P/E has been as high as 7.97 and as low as 2.49, with a median of 4.46.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.43. This compares to its industry's average P/S of 2.08.

Investors could also keep in mind Earthstone Energy (ESTE), an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, Earthstone Energy holds a P/B ratio of 1.02 and its industry's price-to-book ratio is 3.05. ESTE's P/B has been as high as 2, as low as 0.66, with a median of 1.04 over the past 12 months.

These are only a few of the key metrics included in Comstock Resources and Earthstone Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CRK and ESTE look like an impressive value stock at the moment.

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Comstock Resources, Inc. (CRK) : Free Stock Analysis Report
 
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