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. However,with careful selection investors 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 fit the bill? Take a look at three undervalued stock buys to see:

It's been a tough year for aluminum. The spot price of so-called "primary aluminum" (99.7% purity) has fallen over -12% year to date, but that's nothing when compared to the decline in the world's largest aluminum manufacturer Alcoa Inc. (AA). The Dow Jones component's shares are down over -32% year to date, a decline that's a clear reflection of fears of another leg downward in the global economy.

But investors should remember the old adage "buy low, sell high" when it comes to Alcoa. AA stock may have had a rough run lately, but there are signs pointing to a turnaround in the company soon. Here are three reasons why investors should consider Alcoa stock for their portfolios.

Great dividend picks are easier to find than you think. Retirees looking for safe places to stash their cash are already familiar with many blue chips that have hefty yields. It's just that when investors stop at the grocery store or pay their phone bill, they aren't thinking about how the big brands they're doing business with are actually good dividend payers.

Here are three of America's best know public corporations with yields that are about twice what 10-year Treasuries pay. These low-risk blue chips are some of the most famous high-yield dividend stocks out there.

As a "growth guy," who focuses on sales and earnings, I have very strict guidelines for screening penny stocks. Small stocks come with big risks, and there aren't always the concrete numbers I demand in these investments. However, if you do your homework you can often separate the poor penny stocks from the shiny picks that could deliver big profits overnight.

Here are three of my favorite penny stocks right now:

It's a volatile market out there, but investors shouldn't take that as a sign that they should run for the hills. The bottom line is that volatility can cut both ways -- and while most traders are more concerned with the downside risks, that shouldn't overshadow the potential for quick and substantial gains with a well-timed swing trade.

In my book, one of the best short-term buys you can make right now is a well-timed in and out in small cap tech stock Tower Semiconductor Ltd. (TSEM). Shares cost about as much as a fountain soda from the corner store, but have the potential to add a sugar rush to your portfolio very quickly.

There is a decidedly global flavor to KFC, Taco Bell and Pizza Hut restaurants lately. And no, we're not talking about the Chalupa Baja -- this is about a global sales for these franchises and their parent company.

In recent years, operator Yum! Brands (YUM) has been growing at a breakneck pace, now with more than 3,500 locations in China alone and plans to open another 900 restaurants outside the U.S. in 2010. And the next global market that is in its sights is the United Kingdom, with a Taco Bell in Essex set to peddle low-priced burritos by the end of June.

Who's really worse, British Petroleum (BP) or Goldman Sachs Group, Inc. (GS)? Consumers have plenty of reasons to be down on both companies right now. Energy giant BP is up to its elbows in oil as a deepwater well on the ocean floor continues to spew oil over a month after the initial failure, and Goldman is currently under investigation for allegedly peddling investments while at the same time profiting from those investments' failures.

But some traders can't help but wonder whether the problems are overblown and one or both of these stocks are actually the bargain buy of the year right now. So what's the deal? Are these stocks really bad for investors, or are they just a victim of bad press?

We heard from some of the biggest names in retail recently when Target (TGT) and Wal-Mart (WMT) reported earnings. Now that the numbers are in, investors can take a hard look and decide once and for all which company is a better fit for their portfolio – the "cheap chic" store or its larger and less polished rival.

While both retailers reported solid year-over-year profit increases, there's clearly one company on target, and one that's hit the wall. (Yes, those puns are intended).

It used to be that McDonald's (MCD) was known for its fast food like Happy Meals, Egg McMuffins and Big Macs. But increasingly, the burger giant has been looking to brand itself as a beverage leader. It's no secret why -- drinks are high-margin products, providing the biggest bang for a restaurant's buck. And with the non-alcoholic beverage business in the U.S worth $153 billion, Mickey D's would be crazy not to try to get a slice of that pie.

Its latest effort: The addition of smoothies and iced frappes to its already impressive suite of McCafe gourmet coffees. Flavors include wild berry, strawberry banana, mango and strawberry flavors at select locations.

Retail is heating up. A look at the hottest retail ETFs shows that the sector is dramatically outperforming the market so far in 2010 -- up to four times over! That means if you were holding some of the elite retail components in these funds, you would be doing even better.

Take online retailer Overstock.com (OSTK), up over 65% since January 1 to today's opening bell! Any investor who has blacklisted the entire retail sector is missing out on big moneymakers like this company.

There's a lot of uncertainty in the oil industry right now as the Gulf of Mexico oil disaster continues to wreak political, environmental and economic damage. BP plc (BP) has seen its stock dive 18% in the last month, and the rest of the sector has been fighting against the fallout as well.

But not all energy stocks have been a bust in the last 30 days. There's one oil stock that is up over 11% in that period -- and on top of this share appreciation, boasts a stunning dividend yield of 12.6%!

That high-dividend yield stock is the Whiting USA Trust (WHX).

First, let's get one thing straight: A stock split does not change the underlying value of a company. It's simply a repackaging. For instance, instead of selling 10 whole pies for $10 each, you cut each pie into 10 pieces and sell them for $1 each. Either way, you have $100 worth of assets.

So why in the world did Baidu (BIDU) get a hefty boost in share price simply from dividing its $700 shares into 10 smaller, $70 pieces? And more importantly, will Green Mountain Coffee (GMCR) perform the same way when it splits 3 for 1 next week?

By Sam Collins

Last week's 1,000-point intraday sell-off and 6% fall in three sessions was followed Monday morning by a 300-plus point rally in the Dow on news of a European bailout plan. The past few days have shown us just how sensitive this market is to the news, especially concerning the ongoing European financial saga.

It's time to be very cautious, to prune laggards from your portfolios, raise cash and hold only quality stocks that will benefit most from the economic recovery. To help you with that, I've dissected the technical analysis on some hot stocks set for big moves right now -- and at the top of that list is EMC Corp. (EMC). Here's the chart that will prove to you why:

In a recent Wall Street Journal interview, top Nike (NKE) executive Mark Parker talked about his ambitious goal to boost global sales 40% by 2015. His strategy? Focus on China, Brazil and India and connect with these emerging markets' emerging middle classes.

And most interesting of all: The company is planning this move under brands that don't bear the trademark swoosh logo.

Stocks that paid out hefty annualized dividends were a big hit during the Great Recession, since investors could at least rely on a regular "paycheck" even if the market wasn't always very clear. After the mayhem last Thursday, with the Dow Jones Industrial Average taking mid-day lurch downward of nearly 1,000 points, dividends are looking more and more attractive.

Yes, the market seemed to be moving higher Monday morning -- and there are folks out there who insist the charts just don't support a market crash. But if you want to be safe instead of sorry, why not get the best of both worlds -- an agile small cap stock outperforming the market this year that also sports a mammoth dividend yield of almost 14%!