Just because a company has a low price-to-earnings ratio or a high dividend doesn't make it a value. But sometimes, the market gives us the opportunity to buy great companies that trade for a value. 

As the market pushes growth stocks higher once again, I think there are some opportunities in old, legacy companies. There's a lot to like in General Motors (GM -2.72%), including its majority ownership of Cruise, and Verizon (VZ -1.07%) may be more of a growth stock than you think. 

1. General Motors

Just how cheap is General Motors' stock today? Shares trade for just 6.7 times 2022 earnings, and investors get a 0.9% dividend yield on shares. On a forward basis, the company's $57.2 billion market cap is just 6.1 times the midpoint of GM's earnings guidance for 2023. 

The narrative is that General Motors is falling behind Tesla in electric vehicles, but the operational picture is better than you might think. In 2022, automotive adjusted free cash flow was $10.5 billion, even after investing $9.0 billion in capital expenses. Management expects that to come down in 2023 to $5.0 billion to $7.0 billion, but that's still a tremendous level of cash generation for a company valued at $56 billion. 

GM Financial, the financing arm that provides leases and loans for automobiles to customers, is where the company's finances get complicated. The unit holds $92.6 billion of the company's $109.4 billion in debt, so the core operating business isn't nearly as leveraged as it seems. And having financing available to customers is a value for the business long-term. 

On top of the auto and financing businesses, GM owns about 80% of the autonomous driving company Cruise. This is where I see the most long-term potential to disrupt the auto business, and commercial operations have already begun. 

Investors are getting GM for a low price with Cruise tossed in like it's free. That's a cheap stock if you ask me. 

2. Verizon

I think Verizon is one of the market's most underestimated companies today. Shares trade for just 7.6 times earnings, and the company's dividend yields 6.8%. That implies the market isn't expecting much growth, but that may not be true. 

In 2022, the company generated $37.1 billion in operating cash flow, showing what a great business this is. But capital expenditures were $23.1 billion as Verizon built out its 5G network. Capital expenditures are expected to fall to $17 billion by 2024, so free cash flow should rise as 5G proliferates and spending comes down. In 2023, the company expects to grow high-margin wireless service revenue by 2.5% to 4.5% and generate $47.0 billion to $48.5 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). 

There are two positives that I see right now. One is the growth of fixed broadband, or 5G wireless broadband, which can be bundled with wireless and even streaming services. In the fourth quarter alone, the company added 379,000 fixed wireless customers, and growth is accelerating. On top of that, Verizon has recently announced some price increases for wireless services. Slowly but surely, prices will likely go up. 

Wireless service is a sticky business, and Verizon has a network that customers are loyal to. I think the addition of fixed wireless and the potential to bundle will only increase that stickiness, and that's why I love this stock at the current price. 

Value for long-term investors

These are two businesses that may not be exciting because they're growing relatively slowly compared to some tech and growth stocks. But they're generating positive free cash flow and are well positioned to keep earnings growing. That's why I love these stocks long-term and think they're great buys on the dip.