This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple Wins the Search for Value

Stocks in this article: AAPL

NEW YORK ( TheStreet) -- The most popular question asked of me Tuesday at the Country Club of Orlando was what is the best value stock in the market today? Without hesitation I replied Apple (AAPL) is the clear winner.

This morning I put ValuEngine software, the daily and weekly charts and my proprietary analytics to the test to find a better choice.

My Definition of a Value Stock

I want the best value stock to be a member of the S&P 500 and for the stock to at least have a buy or strong buy rating according the ValuEngine Forecast Model. This gave me 16 stocks rated "5-Engine" or strong buy and 170 stocks rated "4-Engine" or buy.

Since the stock market remains under the caution flag of a ValuEngine Valuation Warning with 65.2% of all stocks overvalued, I trimmed the list to only those stocks that were at least 10% undervalued. This cut the list down to just 27 candidates and among them was Apple.

To whittle down the list further I wanted only those stocks that were trading above $10 a share and projected to gain of at least 7.5% over the next 12 months, which is 2.5% above the 5.0% threshold needed to maintain a buy rating. The result was 10 stocks including Apple.

Adding the Technical Component

My technical definition of a value stock is one that is oversold on its weekly chart. Five of the 10 finalists were overbought on their weekly charts, so the list was culled to five. Two had declining momentum and two had rising momentum. Apple wins as the only value stock with oversold momentum with a 12x3x3 weekly slow stochastic reading of just 10.39 on a scale of 00.00 to 100.00 where a reading under 20.00 is oversold. The five-week modified moving average at $456.00 and the 200-week simple moving average at $365.28.

Chart Courtesy of Thomson/Reuters Chart Courtesy of Thomson / Reuters

Apple ($428.35) set a 52-week low at $419.00 on March 4, holding my annual value level at $421.05 on that day and again on March 5.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,649.96 +293.09 1.69%
S&P 500 2,044.70 +31.81 1.58%
NASDAQ 4,726.1110 +81.7990 1.76%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs