When the stock market goes into a bear market, it drags down almost every stock. Sound, profitable companies see their shares driven down right alongside the perhaps more deserving stocks that may have been overvalued.

If you understand how a company operates and the concept of relative valuations, you can, during a bear market, find stocks that will produce tremendous returns once the market recovers.

During the 2008-2009 bear market, I discovered Aircastle Ltd., a commercial aircraft leasing company. From the bottom of that bear market until the company was acquired in 2019, the shares returned well over 1,000% from share price appreciation and growing dividends.

So, in this current, almost-a-bear market, I recommend taking a look at another beat-down but very sound stock…

I’m talking about OneMain Holdings (OMF). OneMain Holdings owns OneMain Financial, which is a financial services company that provides loans and credit cards to credit score-challenged customers. The company charges high rates on its loans but also puts a lot of resources into teaching customers how to improve their credit standings.

OneMain is nicely profitable. Forecast 2022 earnings are $8.76 per share. The company is a dividend growth stock that currently pays a $0.95 quarterly dividend, so the dividend is well covered; the payout increased by 35% in February.

However, since the start of May, the OneMain’s share price has dropped by about 20%. The stock now trades at a P/E of 4.6 and a dividend yield of 9.4%.

To recap, this is a dividend growth stock from a profitable, well-run company with an excellent dividend yield. Yet the share price is down 33% from its 52-week high.

Note that the P/E of 4.6 is well below the average for the S&P Financial sector, which currently sports an average P/E of just under 13. This makes OneMain, to use the technical term, a “stupid cheap” stock.

With a share price currently near $40, OneMain should quickly climb to $60 as it comes out of this bear market. And while you wait, you’ll get a very nice quarterly dividend.