Can Comstock Resources Inc (CRK) and Civeo Corp (CVEO) Drill Themselves Out Of The Red?
New York, NY – GDP INSIDER – 03/18/2015.
This article discusses two companies: Comstock Resources Inc (NYSE:CRK) and Civeo Corp (NYSE:CVEO)
Comstock Resources Inc (NYSE:CRK) continued to decline yesterday with the stock slumping 11.06% or $0.45 to close at $3.62 after analysts at Global Hunter Securities downgraded their rating on the stock from ‘neutral’ to ‘sell’ and lowering their price target from $5 to $3. More than 3.76 million shares changing hands compared to its three month average trading volume of 3.03 million. The Texas-based oil and natural gas acquisition, exploration and development company has been seeing its stock value decline recently, in line with the ongoing weakness in the price of oil.
Comstock Resources Inc has been underperforming for the last six months, with the stock down 82.93% compared to the S&P 500 which is up 3.63% over the same period. The difference has narrowed since the beginning of the year, with the stock down 46.64% while the S&P 500 is up 0.75%. With RSI of 29.95 and target price estimate of $6.96 the stock has potential growth, but will largely be dependent on whether the oil prices go up again. Better to sell than hold for now.
Civeo Corp (NYSE:CVEO) continued to decline yesterday closing down 7.33% or twenty cents at $2.53 on average trading volume of 2.65 million shares, compared to its 30-day average trading volume of 2.33 million. That being said, the situation could have been much worse for the Texas-based company, as it dropped to a new 52 week low of $2.50 during yesterday’s trading. The recent decline moved the stock 26.02% below its 50-day SMA of $3.39 and 83.01% below its 200-day SMA of $14.64.
Over the past one week and over the past four weeks, the shares of Civeo Corp have lost 24.93% and 34.63% value, respectively. Not only that, but the stock has also been significantly underperforming the S&P 500 for most of the year, losing 89.81% over the past six months compared to the index’s gain of 3.63% over the same period. The stock has an RSI of 25.85, which indicates that the stock is oversold at the current level and might have fallen too quickly. With a one year target price estimate of $4.50 and P/E (ttm) of 2.11, the company has good upside potential in the short to medium term. Hold.
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