The stock market tends to go overboard from time to time. There are legitimate reasons investors should be wary of AT (NYSE: T) and Hanesbrands (NYSE: HBI), for example. The telecom giant is facing an increasingly competitive environment, and the apparel manufacturer is still recovering from supply chain issues and excessive inventory levels.

But shares of both stocks are now priced for catastrophe after tumbling from their pandemic-era highs. While investing in AT and Hanesbrands will require patience, the payoff could be enormous as each company rights its respective ship.

Telecom giant AT trades for just 6.5 times its guidance for free cash flow. The stock sports a 7.5% dividend yield. The company is still gaining wireless subscribers AT a healthy, albeit subdued, pace, and its fiber business is booming.

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Source Fool.com