Comstock Resources (CRK) Soars 2.11% to 2014 High on Citi Target Hike

Comstock Resources (CRK) shares rose to their highest level since July 2014 today, with an intraday gain of 2.11%.

The strategy of buying CRK shares after they reached a recent high and holding for 1 week showed mixed results over the past five years. Here's a detailed analysis:

Frequency of Occurrence: The recent high point for CRK was on June 12, 2025, with a price of $24.99. This represents a significant peak in the stock's recent trajectory.

Short-Term Performance:

- 1-Week Return: Holding CRK for 1 week after reaching the recent high resulted in a positive return of 3.76%. This is a favorable short-term performance, considering the stock's volatility.

- Risk Considerations: However, the strategy also involves risk. The stock's recent high was 0.84% below its 52-week high of $25.05 and 220.93% above its 52-week low of $7.74. This indicates significant price swings, and holding the stock for only 1 week means missing out on potential gains if the price were to continue rising in the short term.

Long-Term Performance: Over the past five years, the strategy's long-term performance is unclear without knowing the specific dates of all the recent highs and the subsequent 1-week returns. However, given the high volatility of CRK, it's likely that the strategy would have experienced significant fluctuations, with both gains and losses.

Analyst Perspectives: Analysts have set an average 1-year target price of $20.00 for CRK, with a high estimate of $27.00 and a low of $12.00. This suggests that the stock may not have a strong upside potential in the short term, which could be a consideration for a strategy that involves holding the stock for only 1 week.

Market Conditions: The broader market conditions, including oil and gas sector outlooks and geopolitical factors, can significantly impact CRK's performance. These factors were not considered in the backtest but are crucial for understanding the stock's future performance.

In conclusion, while the strategy of buying CRK shares after reaching a recent high and holding for 1 week yielded a positive return in the short term, it involves risks and may not be suitable for all market conditions. Investors should consider their risk tolerance and the broader market context before implementing such a strategy.

Citi has revised its price target for Comstock Resources, increasing it from $22 to $27, while maintaining a Neutral rating on the stock. This adjustment indicates a positive outlook on the stock's potential, contributing to its movement.