5 Undervalued and Cheap Energy Stocks to Buy Now

4. Comstock Resources, Inc. (NYSE:CRK)

Number of Hedge Fund Holders: 25

P/E Ratio as of September 13: 16.86

Share Price as of September 13: $20.06

Comstock Resources, Inc. (NYSE:CRK) was incorporated in 1919 and is headquartered in Frisco, Texas. It is an independent energy company focusing on the acquisition, exploration, and production of oil and natural gas mainly in North Louisiana and East Texas. On August 1, Comstock Resources, Inc. (NYSE:CRK) posted a Q2 Non-GAAP EPS of $1.00 and a revenue of $946.25 million, outperforming market consensus by $0.05 and $318.45 million, respectively. It is a notable cheap and undervalued energy stock to consider in the current market backdrop. 

On September 13, Stifel analyst Derrick Whitfield raised the price target on Comstock Resources, Inc. (NYSE:CRK) to $27 from $22 and reaffirmed a Buy rating on the shares. The analyst added the stock to the firm’s “Select List” after Comstock Resources, Inc. (NYSE:CRK)’s Q2 earnings and a detailed technical review of its Western Haynesville area. The analyst sees Comstock Resources, Inc. (NYSE:CRK) as “the best vehicle to express a bullish view on the convergence of U.S. and international natural gas prices” given its expanding resource base and advantaged proximity relative to the Gulf Coast. 

Among the hedge funds tracked by Insider Monkey, 25 funds were long Comstock Resources, Inc. (NYSE:CRK) at the end of June 2022, with combined stakes worth $144 million. D E Shaw is the largest stakeholder of the company, with more than 4 million shares worth $50 million.