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Comstock Resources (CRK) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Comstock Resources (CRK - Free Report) closed at $8.67, marking a -0.57% move from the previous day. This change lagged the S&P 500's 1.02% gain on the day. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.4%.

Heading into today, shares of the oil and gas company had gained 1.04% over the past month, outpacing the Oils-Energy sector's of 0% and the S&P 500's loss of 0.91% in that time.

Comstock Resources will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, up 300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $530.9 million, up 93.22% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.40 per share and revenue of $1.35 billion, which would represent changes of +508.7% and +56.84%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Comstock Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. Comstock Resources currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Comstock Resources has a Forward P/E ratio of 6.24 right now. For comparison, its industry has an average Forward P/E of 8.83, which means Comstock Resources is trading at a discount to the group.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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