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Is Comstock Resources (CRK) a Great Value Stock Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Comstock Resources (CRK - Free Report) . CRK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.92. This compares to its industry's average Forward P/E of 18.73. CRK's Forward P/E has been as high as 16.71 and as low as 4.20, with a median of 8.79, all within the past year.

We should also highlight that CRK has a P/B ratio of 0.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past year, CRK's P/B has been as high as 1.78 and as low as 0.69, with a median of 1.09.

Finally, our model also underscores that CRK has a P/CF ratio of 3. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.44. Over the past year, CRK's P/CF has been as high as 6 and as low as 2.20, with a median of 3.74.

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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