Five Value Stocks With Growth Potential

BOSTON (TheStreet) -- With interest rates at record lows, the stock rally could extend into the first quarter. Instead of piling into hot names, investors should check out these cheap stocks.

5. J.M. Smucker(SJM) sells jams and jellies.

The numbers: Fiscal second-quarter net income soared almost tripled to $140 million as earnings per share climbed 26% to $1.18, hurt by a higher share count. Revenue grew 52% to $1.3 billion. J.M. Smucker's gross margin rose from 31% to 39%, and its operating margin jumped from 11% to 18%. Its balance sheet is liquid, with $410 million of cash. A debt-to-equity ratio of 0.3 indicates modest leverage.

The stock: J.M. Smucker has risen 34% this year, more than the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 16, a discount to the market and packaged-food peers. The shares offer a 2.4% dividend yield.