While it sometimes pays to hitch your star to high-flying market darlings, backing stocks that have fallen out of favor can also be a path to great returns. For better or worse, the market has seen volatile trading in recent months, and there are recently a lot more names in that second category to choose from. 

Not every stock that's lagging significantly behind the broader market's performance will bounce back and deliver big wins, but putting your money behind the right laggards can have a huge positive impact on your portfolio's performance. With that in mind, read on for a look at two attractively valued stocks that are smart buys right now. 

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1. Hanesbrands

With the clothing company valued at roughly $5.8 billion, trading at less than nine times this year's expected earnings and less than 85% of expected sales, Hanesbrands (HBI -0.68%) looks downright cheap. Factor in a 3.6% dividend yield and some potentially underappreciated growth opportunities, and the stock might just have a little something for everyone.

The strength of the company's Champion clothing brand, some deft management amid pandemic-related challenges, and a solid dividend yield have helped Hanesbrands deliver a 25% total return over the last three years. Even so, the stock has lagged far behind the S&P 500's roughly 81% total return across the stretch, and shares continue to look attractively priced. 

Hanesbrands estimates that the Champion brand will have posted roughly $2 billion in sales in 2021, and it expects that the brand's sales will hit $3 billion in 2024. Management is guiding for overall company sales to grow at a compound annual growth rate of 6% through the end of the forecast period. That's hardly breakneck growth, but the company's projected earnings growth rate of 9% over the next three years points to the stock being cheap on a price-to-earnings-growth-ratio basis -- particularly when you factor in the dividend yield.

With the company investing in direct-to-consumer sales initiatives and the Champion brand coming to represent a bigger portion of overall sales, Hanesbrands is looking increasingly well-positioned for the future. Solid sales growth, rising margins, feasible avenues to earnings outperformance, and a dependable dividend make this a cheap stock worth pouncing on. 

2. Ubisoft

Ubisoft (UBSFY) stock has gotten crushed over the last year, with shares down roughly 40.5% across the stretch. 

UBSFY Chart

UBSFY data by YCharts

Video game stocks have generally had a tough year, and Ubisoft stock ranked among the industry's worst performers. The company is best known for franchises including Assassin's Creed, Far Cry, Rainbow Six, and Ghost Recon, but it's fallen behind other leading industry players. In general, the company's franchise catalog has been putting up somewhat underwhelming performance recently, 

However, recent developments in the video game industry are highlighting the potential upside that investors could see with Ubisoft. Take-Two announced on Jan. 10 that it plans to acquire mobile publisher Zynga in a $12.7 billion deal, representing a 64% upside from its closing price prior to the merger's announcement. Shortly after, Microsoft announced that it's set to acquire Activision Blizzard for $68.7 billion, good for a 43% premium on the stock's previous closing price. 

Due to the perception that Ubisoft could be the next gaming company to see a big buyout, the company's stock has climbed roughly 23% since the announcement of Take-Two's planned merger with Zynga. Shares still look cheaply valued at current prices.

With a market capitalization of roughly $7.4 billion, Ubisoft currently trades roughly 16 times the midpoint of this year's adjusted operating income target. The company has a valuable collection of gaming properties and development studios. That multiple looks even more appealing because 2021 will likely be a down year for the publisher. Whether Ubisoft gets bought out by a bigger gaming industry player or remains an independent entity, its stock offers significant upside at current prices.