If you're a momentum investor looking for quality names, the following list might offer an interesting starting point.

Here is a list of companies that have reached new 52-week highs during recent sessions. In addition, all of these stocks appear to be undervalued when comparing current price to the fair value price, calculated by the Graham Number equation.

The Graham Number is named after a formula developed by legendary value investor Benjamin Graham. It is the maximum price an investor should pay for a stock, and it is derived using only two data points: current earnings per share and current book value per share.

Here's the formula:

The Graham Number = Fair Value of a Stock = Square Root of (22.5) x (Earnings per Share) x (Book Value per Share).

The math of the Graham number is relatively straightforward. It is predicated on the belief that the price-to-earnings (P/EPS) ratio should be no more than 15, and the price-to-book value (P/BVPS) ratio should be no more than 1.5.

From that, the product of the two should not be more than 22.5. In other words, (P/EPS of 15) x (P/BVPS of 1.5) = 22.5, from which the equation was created.

Despite recent gains, these companies still appear to offer good value. What do you think? Full details below.

The list has been sorted by the upside to the Graham Number.* 1. WellPoint Inc. (WLP):* Health Care Plans Industry. Market cap of $25.09B.

TTM diluted EPS at $6.94, MRQ BVPS at $63.04, implies Graham Number = sqrt(22.5*6.94*63.04) = $99.22 (implies 43.85% upside from current price at $68.97).

The stock has gained 7.14% over the last year.

*Electric Utilities Industry. Market cap of $1.98B.*

2. Cleco Corporation (NYSE:CNL):2. Cleco Corporation (NYSE:CNL):

TTM diluted EPS at $4.08, MRQ BVPS at $21.66, implies Graham Number = sqrt(22.5*4.08*21.66) = $44.59 (implies 34.6% upside from current price at $33.13).

Relatively low correlation to the market (beta = 0.51), which may be appealing to risk averse investors. The stock has gained 32.03% over the last year.

*: Health Care Plans Industry. Market cap of $4.54B.*

**3. Coventry Health Care Inc. (CVH)**TTM diluted EPS at $2.97, MRQ BVPS at $28.1, implies Graham Number = sqrt(22.5*2.97*28.1) = $43.33 (implies 33.75% upside from current price at $32.4).

Exhibiting strong upside momentum--currently trading 7.41% above its SMA20, 11.03% above its SMA50, and 37.19% above its SMA200. The stock has gained 28.12% over the last year.

*Health Care Plans Industry. Market cap of $15.08B.*

**4. Aetna Inc. (NYSE:AET):**TTM diluted EPS at $4.18, MRQ BVPS at $25.73, implies Graham Number = sqrt(22.5*4.18*25.73) = $49.19 (implies 26.23% upside from current price at $38.97).

Exhibiting strong upside momentum--currently trading 5.25% above its SMA20, 14.43% above its SMA50, and 27.63% above its SMA200. The stock has had a good month, gaining 14.42%.

*Major Integrated Oil & Gas Industry. Market cap of $141.14B.*

**5. Total SA (NYSE:TOT):**TTM diluted EPS at $6.49, MRQ BVPS at $37.2, implies Graham Number = sqrt(22.5*6.49*37.2) = $73.7 (implies 20.53% upside from current price at $61.15).

The stock has gained 12.3% over the last year.

*Electric Utilities Industry. Market cap of $4.67B.*

**6. Pinnacle West Capital Corp. (NYSE:PNW):**TTM diluted EPS at $3.26, MRQ BVPS at $33.86, implies Graham Number = sqrt(22.5*3.26*33.86) = $49.84 (implies 15.09% upside from current price at $43.3).

Relatively low correlation to the market (beta = 0.57), which may be appealing to risk averse investors. The stock has gained 20.82% over the last year.

*: Major Integrated Oil & Gas Industry. Market cap of $111.87B.*

**7. ConocoPhillips (NYSE:COP)**TTM diluted EPS at $7.62, MRQ BVPS at $47.92, implies Graham Number = sqrt(22.5*7.62*47.92) = $90.64 (implies 14.03% upside from current price at $79.49).

Exhibiting strong upside momentum--currently trading 7.14% above its SMA20, 13.33% above its SMA50, and 34.28% above its SMA200. The stock has had a good month, gaining 10.48%.

*Diversified Utilities Industry. Market cap of $1.07B.*

**8. Northwestern Corp. (NYSE:NWE):**TTM diluted EPS at $2.14, MRQ BVPS at $22.65, implies Graham Number = sqrt(22.5*2.14*22.65) = $33.02 (implies 9.97% upside from current price at $30.03).

Relatively low correlation to the market (beta = 0.7), which may be appealing to risk averse investors. The stock has gained 20.24% over the last year.

*: Electric Utilities Industry. Market cap of $1.21B.*

**9. El Paso Electric Co. (NYSE:EE)**TTM diluted EPS at $2.31, MRQ BVPS at $18.56, implies Graham Number = sqrt(22.5*2.31*18.56) = $31.06 (implies 7.4% upside from current price at $28.92).

Relatively low correlation to the market (beta = 0.68), which may be appealing to risk averse investors. The stock has gained 43.43% over the last year.

*: Oil & Gas Drilling & Exploration Industry. Market cap of $1.40B.*

**10. EV Energy Partners LP (NASDAQ:EVEP)**TTM diluted EPS at $4.04, MRQ BVPS at $26.75, implies Graham Number = sqrt(22.5*4.04*26.75) = $49.31 (implies 5.41% upside from current price at $46.78).

Exhibiting strong upside momentum--currently trading 6.16% above its SMA20, 11.76% above its SMA50, and 31.91% above its SMA200. The stock has gained 61.02% over the last year.

*: Health Care Plans Industry. Market cap of $47.64B.*

**11. Unitedhealth Group, Inc. (NYSE:UNH)**TTM diluted EPS at $4.1, MRQ BVPS at $23.78, implies Graham Number = sqrt(22.5*4.1*23.78) = $46.84 (implies 5.25% upside from current price at $44.5).

The stock has gained 29.3% over the last year.

*Semiconductor Industry. Market cap of $2.97B. The stock has had a couple of great days, gaining 6.52% over the last week (note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.15))*

**12. Vishay Intertechnology Inc. (NYSE:VSH):**TTM diluted EPS at $1.89, MRQ BVPS at $9.04, implies Graham Number = sqrt(22.5*1.89*9.04) = $19.61 (implies 5.02% upside from current price at $18.67).

Might be undervalued at current levels, with a PEG ratio at 0.78, and P/FCF ratio at 7.42. The stock is also a short squeeze candidate, with a short float at 11.34% (equivalent to 6.66 days of average volume).

**Disclosure:**I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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