Growth stocks may be all the rage as the stock market flirts with new all-time highs, but value investing is a tried-and-true strategy that works over the long run. Investing in value stocks can look foolish at times, particularly when shares of unprofitable companies with no competitive advantages to speak of are delivering world-beating returns. But the pendulum always swings back toward value sooner or later.
Despite a frothy stock market, there are still some good deals out there for value investors. If you’re looking for stocks with beaten-down valuations and the potential to soar as the market wises up to their true value, look no further than General Motors (NYSE: GM) and Hanesbrands (NYSE: HBI).