Last week we took big gains in Western Digital (NSDQ: WDC) and Seagate Technology (NSDQ: STX), as both of them had appreciate to the point that they no longer score highly enough on our STR ranking system to remain in our upper echelon of undervalued tech stocks.  

The good news is that there are other companies now with higher STR scores, one of which I am adding to our Investments Portfolio. Effective today I am initiating a position in Verizon Communications (NYSE: VZ) with a buy limit of $55. It now has an STR score of 9.8 thanks to the strong combination of high dividend (currently yield is 4.5%), strong cash flow, excellent strategy execution and discounted valuation based on forward earnings.

While Verizon is hardly a secret, it has traded flat since peaking near $54 in the spring of 2013. We believe it is due for a breakout to the upside, and would hold its value relatively well in the face of a stock market correction should there be one prior to the next Presidential election.