BOSTON ( TheStreet) -- Investors who expect the market to rally next quarter should look for cheap stocks to buy now. Here are five undervalued companies to consider. 5. W.W. Grainger ( GWW) sells industrial supplies and equipment. The numbers: Third-quarter net income increased 3% to $145 million, or $1.88 a share, as revenue fell 14% to $1.6 billion. Grainger's gross margin was unchanged at 42%, but its operating margin declined 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 22% this year, more than the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 17, a discount to the market and distribution peers. The shares offer a 1.9% dividend yield.