Frontier Communications ($4.65) provides telephone, TV and Internet services to consumers and small businesses through rural local exchange telephone companies. Frontier has a buy rating and is 8.2% undervalued with a gain of 8.6% in 2013 and a projected gain of 11.5% in 2014, and is above its 200-day SMA at $4.32. Frontier has a neutral weekly chart profile with its five-week MMA at $4.62 and its 200-week SMA at $5.95 as a logical price target. My semiannual value level is $3.64 with a monthly pivot at $4.61 and semiannual risky level at $5.01.
Staples ($15.89) provides office supplies, products and services to consumers and small businesses. Staples has a buy rating and is 8.2% undervalued with a gain of 39.4% in 2013 and a projected gain of 9.5% in 2014, and is above its 200-day SMA at $15.13. The stock has a neutral weekly chart profile with its five-week MMA at $15.64 and its 200-week SMA at $16.51. My quarterly value level is $14.53 with an annual pivot at $15.54 and annual risky level at $17.57.
Verizon ($49.14) is one of the largest providers of wireline and wireless communalizations services and includes the Fios platform of telephone, TV and high-speed internet connectivity services. Verizon has a buy rating and is 6.6% undervalued with a gain of 13.6% in 2013 and a projected gain of 8.7% in 2014, and is just below its 200-day SMA at $49.65. Verizon has a neutral weekly chart profile with its five-week MMA at $49.06 and its 200-week SMA at $39.78. My weekly value level is $48.20 with a semiannual pivot at $49.60 and semiannual risky level at $50.75.
On a year-to-date basis the Dow utility average was the best performing average at the end of April 2013 with a gain of 18.7%. With the rise in Treasury yields that began in May, selling pressure shifted into the utilities sector, which ended 2013 below its 200-day SMA at 495.89 with a gain of 8.3%. The weekly chart profile is neutral with the five-week MMA at 490.08 and the 200-week SMA at 445.90. My monthly value level is 440.53 with quarterly and annual pivots at 496.84 and 497.53 and semiannual and annual risky levels at 504.74, 524.37 and 548.70.At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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