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.

4. Lincoln Educational Services ( LINC) provides career education.

The numbers: Third-quarter profit more than doubled to $14 million, or 50 cents a share, as revenue grew 48% to $148 million. Lincoln's gross margin rose from 63% to 65%, and its operating margin increased from 10% to 16%. The company has a strong financial position, with $38 million of cash and $37 million of debt.

The stock: Lincoln has advanced 67% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to the market and education peers. Lincoln doesn't pay dividends.

3. TreeHouse Foods ( THS) sells pickles and coffee creamer.

The numbers: Third-quarter net income doubled to $28 million, or 85 cents a share, as revenue increased 1% to $379 million. TreeHouse's gross margin rose from 22% to 24%, and its operating margin widened from 7% to 8%. A quick ratio of 0.6 indicates weak liquidity. A debt-to-equity ratio of 0.7 indicates reasonable leverage.

The stock: TreeHouse Foods has ascended 26% this year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 17, a discount to the market and food products peers.

2. Village Super Market ( VLGEA) owns a ShopRite chain.

The numbers: Fiscal fourth-quarter net income declined 3% to $6.7 million, or 50 cents a shares, as revenue grew 4% to $311 million. Village Super Market's gross margin rose from 27% to 28%, but its operating margin was unchanged at 4%. The company has $55 million of cash and $37 million of debt.

The stock: Village Super Market has increased 4% this year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to the market and food retailers. The shares offer a 3.1% dividend yield.

1. Church & Dwight ( CHD) sells household products.

The numbers: Third-quarter net income rose 43% to $70 million, or 98 cents a shares, as revenue inched up 2% to $646 million. Church & Dwight's gross margin rose from 43% to 49%, and its operating margin expanded from 15% to 18%. A quick ratio of 1.1 indicates adequate liquidity. A debt-to-equity ratio of 0.5 reflects conservative leverage.

The stock: Church & Dwight has risen 5% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 18, reflecting a discount to the market, but on par with household products peers. The shares offer a 1% dividend yield.

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