Comstock Resources, Inc. (CRK) Outperforms the Market but Sees Only Muted Optimism

Tags: CRK
7 May 12:10am
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Interested in a stock that has handily outperformed the market recently? Interested in a stock that has done so yet is still relatively under-loved on the Street? If so, then check out Comstock Resources, Inc. (CRK).


Chart Courtesy of Thomson Financial

Shares of this oil- and natural gas-exploration firm were brought to my attention when they made this morning's post. However, despite the positive comments, there is still room for others on the Street to be won over. According to Zacks, only 4 of 9 analysts (44 percent) rank the stock with a "buy" rating. It is also worth pointing out that few option traders were betting on continued strength. A check of the front-month open interest configuration shows virtually no overhead calls.

With the stock hitting new highs after this news, it seems like this could be a situation where analysts and traders take a second (or first) look at the company. The stock is hitting short-term overbought levels, so that is a near-term concern, but the intermediate-term rally looks strong.


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Schaeffer’s Investment Research, founded by Bernie Schaeffer in 1981, is a research-driven provider of investment research and recommendations featuring a unique, time-tested analysis of investor expectations. Schaeffer's contrarian approach, called Expectational Analysis®, focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription publication and it's website, www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's.