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.
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.