Is Comstock Resources (CRK) a Great Value Stock Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Comstock Resources (CRK) is a stock many investors are watching right now. CRK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.07, while its industry has an average P/E of 13.73. Over the past 52 weeks, CRK's Forward P/E has been as high as 132.30 and as low as -109.12, with a median of 8.49.
Investors should also recognize that CRK has a P/B ratio of 1.13. The P/B is a method of comparing a stock's market value to 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 1.90. CRK's P/B has been as high as 1.86 and as low as -0.45, with a median of 1.13, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRK has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.33.
Finally, investors should note that CRK has a P/CF ratio of 3.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CRK's current P/CF looks attractive when compared to its industry's average P/CF of 5.89. 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 5.04.
These are just a handful of the figures considered in Comstock Resources's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CRK is an impressive value stock right now.
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