Stocks To Buy And Watch Include Oil Play Up 116% In 2022 With Big Earnings And Sales Growth

Investors should be actively looking for top growth stocks to buy and watch after the major indexes had their best day Thursday since early 2020. One name to consider for your watchlist is from IBD’s Sector Leaders screen: Comstock Resources (CRK).

X

Comstock Resources is an independent U.S. exploration and production firm that focuses on natural gas production, with a substantial 372,000 net acres in the Haynesville Shale. This shale is located across the borders of Louisiana, Arkansas and eastern Texas. The firm is well positioned geographically to become a major natural gas producer for the ever-growing liquefied natural gas (LNG) industry.

Basing After A Powerful Rise In 2022

While Comstock’s chart on MarketSmith may appear to have drifted sideways for the past few months, shares have booked a powerful 116% rise year to date through Friday afternoon.

Geopolitical shifts and economic conditions gave the entire oil and gas industry a big boost earlier this year. After things cooled off over the summer, oil stocks have been popping up frequently among top stocks to buy and watch.

Comstock’s volatility has been calming down, which is a good sign. Shares have been forming a base since mid-September with a 21.95 buy point. CRK stock has been pulling back this week to test support at its 50-day moving average. Investors should look for support at this key area to hold.

CRK’s industry group ranks No. 26 out of IBD’s 197 groups, a very good sign. But the stock’s relative strength line has been drifting sideways the past several weeks with no strong indication of relative strength.

On the positive side, Comstock’s IBD Ratings are stellar across the board with perfect 99 Composite, EPS and Relative Strength Ratings.

Stocks To Buy And Watch: Comstock Resources

Comstock Resources, based in Texas, has seen triple-digit year-over-year EPS growth over the past four quarters. Earnings growth of 400% and 237% was supported by sales growth of 175% and 133% in the two most recent quarters as well.

In the firm’s most recent earnings release, the company touted strong results from its Haynesville shale drilling program with 17 operated wells. Haynesville is considered to be the second-largest natural gas deposit in the U.S. The company also noted it generated its highest quarterly operating cash flow in the company’s history at $533 million in Q3.

“Comstock delivered record cash flow and free cash flow from operations in the third quarter” CEO Jay Allison said of the firm’s results. “The record-setting financial results we have had so far this year have repositioned our balance sheet to be a strength of the company.”