Yahoo Finance Big Money Explores Comstock Resources
And the independent energy company could rise even more due to strong sales growth. But another likely reason is Big Money lifting the stock.
Comstock Resources Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Comstock Resources has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CRK has made the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com
In the last year, the stock attracted 13 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
Year-to-date outperformance vs. Energy Select Sector SPDR ETF (+44.5% vs. XLE)
Outperformance is important for leading stocks.
Comstock Resources Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Comstock Resources has been growing sales at big clips and has a favorable earnings outlook. Take a look:
1-year sales growth rate (+115.7%)
3-year sales growth rate (+74.8%)
2-year vs. 1-year EPS growth estimate (+22.1%)
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, CRK has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
CRK has a lot of qualities that are attracting Big Money. It’s made the Top 20 report six times since 2020, with its first appearance on 10/05/2021…and gaining 42.4% since. The blue bars below show when Comstock Resources was a top pick:
Source: www.mapsignals.com
It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CRK makes additional appearances in the years to come. Let’s tie this all together.
Comstock Resources Price Prediction
The Comstock Resources rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in CRK at the time of publication.
Learn more about the MAPsignals process here.
Contact
https://mapsignals.com/contact/
This article was originally posted on FX Empire
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