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Comstock Resources (CRK) Soars to a 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Comstock Resources (CRK - Free Report) ? Shares have been on the move with the stock up 112.5% over the past month. CRK hit a new 52-week high of $11.36 in the previous session. Comstock Resources has gained 26.6% since the start of the year compared to the 12.1% move for the Oils-Energy sector and the 10.2% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 10, 2018, Comstock Resources reported EPS of $-0.23 versus the Zacks Consensus Estimate of $-0.68 while it missed the consensus revenue estimate by 4.61%.
For the current fiscal year, Comstock Resources is expected to post earnings of $-0.36 per share on $381.7 million in revenues. This represents a 90.77% change in EPS on a 49.49% change in revenues. For the next fiscal year, the company is expected to earn $0.3 per share on $537.1 million in revenues. This represents a year-over-year change of 183.33% and 40.71%, respectively.
Valuation Metrics
Comstock Resources may be at a 52-week high right now, but what might the future hold for CRK? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Comstock Resources has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Comstock Resources currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Comstock Resources passes the test. Thus, it seems as though CRK shares could still be poised for more gains ahead.
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Comstock Resources (CRK) Soars to a 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Comstock Resources (CRK - Free Report) ? Shares have been on the move with the stock up 112.5% over the past month. CRK hit a new 52-week high of $11.36 in the previous session. Comstock Resources has gained 26.6% since the start of the year compared to the 12.1% move for the Oils-Energy sector and the 10.2% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 10, 2018, Comstock Resources reported EPS of $-0.23 versus the Zacks Consensus Estimate of $-0.68 while it missed the consensus revenue estimate by 4.61%.
For the current fiscal year, Comstock Resources is expected to post earnings of $-0.36 per share on $381.7 million in revenues. This represents a 90.77% change in EPS on a 49.49% change in revenues. For the next fiscal year, the company is expected to earn $0.3 per share on $537.1 million in revenues. This represents a year-over-year change of 183.33% and 40.71%, respectively.
Valuation Metrics
Comstock Resources may be at a 52-week high right now, but what might the future hold for CRK? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Comstock Resources has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
Comstock Resources, Inc. Price and Consensus
Comstock Resources, Inc. Price and Consensus | Comstock Resources, Inc. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Comstock Resources currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Comstock Resources passes the test. Thus, it seems as though CRK shares could still be poised for more gains ahead.