Five Bargain Stocks Set to Rally

BOSTON (TheStreet) -- Warren Buffett, Bill Miller and other value investors make money by buying cheap stocks with growth potential. Here are five cheap names you should consider:

5. Dollar Tree(DLTR Quote) operates discount variety stores.

The numbers: Fiscal second-quarter profit surged 51% to $57 million, or 63 cents a share, as revenue grew 12% to $1.2 billion. The company's gross margin rose from 37% to 38%, and its operating margin increased from 6% to 7%. A quick ratio of 0.8 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.2 reflects modest leverage.

The stock: Dollar Tree has advanced 18% this year, more than the Dow Jones Industrial Average, but less than the S&P 500 Index. The stock trades at a price-to-earnings ratio of 17, a discount to the market and general retailers. Dollar Tree doesn't pay dividends.