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). 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) 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.