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Do you like searching for undervalued and underestimated names? For ideas on how to start your own value search, we ran a screen.

We began by screening the utilities sector for stocks with upward momentum, trading above their 20-day, 50-day, and 200-day moving averages.

We then screened these names for those that appear undervalued relative to the Graham Number, a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham. It is based off of a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

1. Portland General Electric Company (POR): Operates as an integrated electric utility in Oregon. Market cap at $1.91B. Price at $25.25. The stock is currently rallying 1.76% above its 20-day moving average, 2.10% above its 50-day MA, and 4.99% above its 200-day MA. Diluted TTM earnings per share at 1.95, and a MRQ book value per share value at 22.07, implies a Graham Number fair value = sqrt(22.5*1.95*22.07) = $31.12. Based on the stock's price at $24.75, this implies a potential upside of 25.73% from current levels.

2. Sempra Energy (SRE): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Market cap at $15.42B. Price at $63.87. The stock is currently rallying 5.09% above its 20-day moving average, 8.25% above its 50-day MA, and 19.72% above its 200-day MA. Diluted TTM earnings per share at 5.62, and a MRQ book value per share value at 41.01, implies a Graham Number fair value = sqrt(22.5*5.62*41.01) = $72.01. Based on the stock's price at $62.39, this implies a potential upside of 15.42% from current levels.

3. DTE Energy Co. (DTE): Operates as an electric and natural gas utility company in Michigan. Market cap at $9.41B. Price at $55.29. The stock is currently rallying 0.98% above its 20-day moving average, 1.89% above its 50-day MA, and 8.69% above its 200-day MA. Diluted TTM earnings per share at 4.18, and a MRQ book value per share value at 41.41, implies a Graham Number fair value = sqrt(22.5*4.18*41.41) = $62.41. Based on the stock's price at $54.25, this implies a potential upside of 15.04% from current levels.

*BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

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

Source: 3 Undervalued Utilities With Strong Upward Momentum