Equities have found renewed favor with advisors who are taking advantage of stocks perceived as undervalued.

Advisors reported that U.S. equity allocations reached a level not seen since January, according to the latest Global Asset Allocation Tracker survey of 311 advisors. Allocations to global equities also rose slightly.

Advisors continued to shy from bonds, with many citing uncertainty over the Federal Reserve's intentions to raise rates. Several wealth managers said they took advantage of "great bargains," as some equities were mispriced.

In explaining the move to U.S. equities, one financial planner cited "increased consumer confidence resulting from lower energy prices, better wages and employment opportunities."

Another advisor said, "The U.S. market seems to offer more stable investment opportunities." Although advisors reported a smaller uptick in allocations to global equities, several planners saw buying opportunities in international markets, with many pointing to lower valuations relative to U.S. equities.

"The global, non-U.S. market seems to be on sale right now," a planner said. Several advisors reported that some clients were still reluctant to take advantage of perceived opportunities due to persistent fears of global turmoil, particularly Middle East unrest and China's economic slowdown.