BOSTON (TheStreet) -- The stock-market rally, which stalled on Friday, may extend this quarter as emerging signs of economic growth produce higher profits. Instead of piling into hot names, investors should consider buying undervalued companies in established industries. The following five stocks are poised to gain.
5. TreeHouse Foods (THS) sells pickles and non-dairy coffee creamer.
The numbers: Third-quarter net income increased 153% to $28 million, and earnings per share climbed 143% to 85 cents. Revenue inched up 1% to $379 million. TreeHouse's operating margin extended from 7% to 8%. A quick ratio of 0.6 indicates poor liquidity. A 0.7 debt-to-equity ratio reflects conservative leverage.
The stock: TreeHouse rose 41% during the past year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 19, a discount to food products peers. TreeHouse doesn't pay dividends.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV