Some of the best-performing stocks of 2020 have been hit hard in recent months. Highfliers like Tesla, Peloton Interactive, Snowflake, and Zoom Video Communications have been causing investors nothing but pain. Cryptocurrencies have fared no better. The price of Bitcoin is down around 40% from its all-time high as of this writing.

As richly valued growth stocks and cryptocurrencies tumble, what's left? Value stocks! No, I'm not talking about cheap stocks. I'm talking about high-quality companies trading at pessimistic valuations. These types of stocks aren't going to be 10-baggers anytime soon, but they are capable of providing market-beating returns.

A few value stocks to consider are International Business Machines (NYSE:IBM), General Motors (NYSE:GM), and Hanesbrands (NYSE:HBI). Here's what you need to know.

Puzzle pieces spelling value.

Image source: Getty Images.

International Business Machines

IBM will become a more focused company later this year when it spins off its managed infrastructure services business. The new IBM will be gunning for the hybrid cloud computing market, leveraging its acquisition of Red Hat to go after what could be a $1 trillion opportunity.

IBM returned to growth in the first quarter of 2021 thanks to strong performances from Red Hat and the mainframe business. The company expects revenue to increase for the year, and it sees free cash flow adjusted for one-time items between $11 billion and $12 billion. With a market capitalization of around $130 billion, the stock trades for less than 11 times the high end of that guidance range.

The leaner IBM that will emerge later this year will be free of a slow-growing business that is dragging it down. If the company can prove that its return to growth is sustainable, the stock could be a big winner in the coming years.

General Motors

The electric vehicle market is going to get a lot more interesting over the next few years. While Tesla has long been the only real game in town in the United States, traditional automakers are on the cusp of launching a full-out assault. Ford recently unveiled a surprising affordable electric F-150 pickup truck, for example.

General Motors also has big EV plans. The company will launch 30 new EVs globally by 2025, including electric versions of its GMC Hummer SUV and Chevy Silverado pickup truck. GM is banking on selling more than 1 million electric vehicles annually by 2025. In addition to personal vehicles, GM will leverage its battery technology for its new Brightdrop delivery and logistics business.

GM expects to produce adjusted earnings per share as high as $5.25 this year. Those profits will come despite a global semiconductor shortage and the massive investments the company is making in electric and autonomous vehicles. With GM stock trading for around 11 times earnings guidance, it's not too late to invest in this highly profitable automaker that will likely remain a market leader as the world transitions to electric vehicles.

Hanesbrands

Hanesbrands' dependence on brick-and-mortar retailers didn't do it any favors during the pandemic, although sales of masks helped boost sales. The apparel manufacturer is now focused on expanding both its innerwear and activewear businesses over the next few years, with plans to boost revenue by $1.2 billion by 2024.

Hanesbrands is aiming to double its U.S. innerwear market share with consumers under the age of 39. The company's core Hanes brand is well known, but it's not exactly cool, so Hanesbrands is planning to ramp up marketing spending and launch new e-commerce initiatives.

Meanwhile, Hanesbrands is looking capitalize on the trendiness of its Champion activewear brand. The company is aiming to make the brand a $3 billion business by 2024, up from an estimated $2 billion this year.

Hanesbrands stock is a bargain if you believe the company can hit its targets. The company reported adjusted earnings per share of $1.45 last year, and it expects its EPS to increase by 9% annually through 2024 as part of its growth plan. With a stock price hovering just below $20, a price-to-earnings ratio of less than 14 seems like a good deal given the company's growth potential.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.