Trade-Ideas LLC identified

Comstock Resources

(

CRK

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Comstock Resources as such a stock due to the following factors:

  • CRK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • CRK has traded 1.9 million shares today.
  • CRK is trading at 8.00 times the normal volume for the stock at this time of day.
  • CRK is trading at a new high 50.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CRK with the Ticky from Trade-Ideas. See the FREE profile for CRK NOW at Trade-Ideas

More details on CRK:

Comstock Resources, Inc., an independent energy company, acquires, develops, explores, and produces oil and natural gas properties in the United States. Its oil and gas operations are primarily located in East Texas/North Louisiana and South Texas. Currently there are no analysts that rate Comstock Resources a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Comstock Resources has been 1.8 million shares per day over the past 30 days. Comstock has a market cap of $65.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.14 and a short float of 31.9% with 2.99 days to cover. Shares are down 60.8% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Comstock Resources as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 424.0% when compared to the same quarter one year ago, falling from -$55.07 million to -$288.54 million.
  • Net operating cash flow has significantly decreased to $6.61 million or 90.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 87.01%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 425.21% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • COMSTOCK RESOURCES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, COMSTOCK RESOURCES INC reported poor results of -$22.70 versus -$1.24 in the prior year. This year, the market expects an improvement in earnings (-$4.65 versus -$22.70).
  • Along with the very weak revenue results, CRK underperformed when compared to the industry average of 34.5%. Since the same quarter one year prior, revenues plummeted by 58.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.