BOSTON ( TheStreet) -- The stock rally has made cheap stocks harder to find, but here are five companies whose shares are positioned to gain.
The numbers: Third-quarter net income increased 3% to $145 million, or $1.88 a share. Revenue fell 14% to $1.6 billion. Grainger's gross margin was unchanged at 42%, but its operating margin narrowed from 13% to 12%. The company has a strong financial position, with $672 million of cash and $535 million of debt.
The stock: Grainger has risen 24% this year, beating the Dow Jones Industrial Average and S&P 500. The stock trades at a price-to-earnings ratio of 17, a discount to the market and distributor peers. The shares have a 1.9% dividend yield. #4