This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Value Stocks Include Verizon and Staples

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.

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
AMD $3.10 0.65%
VZ $49.47 0.20%
AAPL $128.45 -1.50%
FB $78.94 -1.80%
GOOG $558.64 0.57%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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