By Nancy Zambell of InvestorPlace
It's becoming a bit of a broken record, but the refrain "another challenging month" does apply to the current market environment. There were a host of factors influencing stocks and keeping their value down in June, but I think there are three primary developments that had investors running for cover.
First, there was China and its recently downward revised leading economic index. Second, we had the uncertainty of new financial reform legislation, which made already nervous investors even more edgy. Finally, we saw lower readings in housing, employment and consumer confidence.
Many of the factors weighing down this market are sure to improve going forward. China's economy is still going strong, and we'll soon see final legislation on financial reform signed by the president. As for housing, employment and consumer confidence, well, those are more of an open question.What isn't an open question, however, is the existence of sound investment opportunities. In fact, I know that with careful selection we can use the current volatility to make money. You see, there are plenty of fundamentally strong yet undervalued companies that the mainstream investment community hasn't picked up. Which stocks am I referring to? The following are my current top five undervalued stock buys.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV