Comstock (CRK) Swings to Profitability in Q2, But Analyst Not Impressed

We recently published Massive Sell-Off: 10 Stocks in a Bloodbath. Comstock Resources, Inc. (NYSE:CRK) is one of the worst-performing stocks on Thursday.

Comstock Resources fell by 14.05 percent on Thursday to end at $17.87 apiece as investors took path from a pessimistic outlook and a lower price target from an investment firm.

In a market note, UBS further downgraded Comstock Resources, Inc. (NYSE:CRK) to a “sell” recommendation after lowering it to “neutral” on July 10. It also reduced its price target to $18 from $20 previously.

According to UBS, Comstock Resources, Inc. (NYSE:CRK) currently faces potential downside risks, including lower natural gas prices, underscoring an approximately 0.5 Bcfpd oversupplied balance that could cause risks due to its leverage position and low free cash flow generation.

In other news, Comstock Resources, Inc. (NYSE:CRK) swung to an attributable net income of $125 million from a $126 million net loss in the same period last year.

Total revenues surged by 90 percent to $270 million from $246.8 million year-on-year.

While we acknowledge the potential of CRK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.