NEW YORK (TheStreet) -- When 86.4% of all stocks are overvalued it is next to impossible to find a true value stock in the S&P 500. In my screen of ValuEngine data I define a value stock as having a buy rating, undervalued by at least 5% and projected to gain at least 7.5% over the next 12 months. Only five stocks satisfied these criteria and three are in the utility sector: FirstEnergy (FE), Frontier Communications (FTR) and Verizon (VZ - Get Report). The utilities sector has an overweight rating as 90.5% of the 210 companies in this sector have buy or strong buy ratings.
Two of the five value stocks are trading under five bucks a share making them 'options on survival.' One is Frontier Communications. The other is Advanced Micro Device (AMD - Get Report) in the computer and technology sector and it also has an overweight rating as do 49.6% of the 1129 stocks in the sector have buy or strong buy ratings.
The fifth value stock is office supplies company Staples (SPLS) from the retail-wholesale sector which also has an overweight rating as do 81.9% of the 343 stocks in this sector have buy or strong buy ratings.
Advanced Micro Devices ($3.87) is a semiconductor company that is also in the PHLX Semiconductor Index (^SOX). Advanced Micro Devices has a buy rating and is 27.9% undervalued and gained 61.3% in 2013 with a projected gain of 49.7% in 2014, and is above its 200-day simple moving average at $3.58. Note that during the tech bubble of 1999/2000 this stock was above $45 a share. The stock has a positive weekly chart profile with rising momentum and above its five-week modified moving average at $3.68 and is below its 200-week SMA at $5.74, which is a logical price target. My quarterly value level is $2.98 with a weekly pivot at $3.88 and monthly risky level at $4.66.
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The semiconductor index rose 39.3% in 2013 to 535.03 and has a first half 2014 semiannual value level at 490.52 with a first quarter pivot at 536.98, a January risky level at 544.70 and semiannual risky level at 548.36.
FirstEnergy ($32.98) provides electricity and natural gas in northern and central Ohio and western Pennsylvania. The utility has a buy rating and is 11.0% undervalued with a loss of 21% in 2013 and a projected gain of 11.4% in 2014, and is below its 200-day SMA at $38.41. FirstEnergy has a negative but oversold weekly chart profile with its five-week MMA at $33.65 and its 200-week SMA at $40.87 as a logical price target. My weekly value level is $29.13 with a semiannual pivot at $32.43 with a quarterly risky level at $36.28.