2 dirt-cheap stocks I’d buy and aim to hold for 10 years

I think these two dirt-cheap UK stocks could be too good to ignore. Here’s why I own one of them, and why I’m considering investing in the other.

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Last year, I snapped up shares in TI Fluid Systems (LSE: TIFS). This business makes lots of components that sit inside electric vehicles (EVs), and so it’s well-placed to benefit from exploding demand for green autos. At current prices I’m tempted to increase my holdings too. In fact, I think TI Fluid Systems could be one of the best dirt-cheap stocks out there.

The parts producer has slumped in value recently due to the supply chain crisis that’s hampering global car production. But as someone who buys shares with a long-term view, I think this weakness represents an attractive dip-buying opportunity.

TI Fluid Systems trades on a price-to-earnings growth (PEG) ratio of just 0.2 for 2022. A reading below 1 suggests a stock could be undervalued, according to traditional investing theory.

TI Fluid Systems is a major parts supplier to the world’s biggest motor manufacturers. Its content is likely to be found in almost 100 key battery-powered vehicles coming to market between 2020 and 2028. And it continues to stack up major contracts with carbuilders to solidify its key role in the EV revolution. This is a UK stock I think is set to thrive in the next decade.

Having your cake…

Yellow Cake (LSE: YCA) is another ultra-cheap UK share I’m looking at. This business purchases uranium from mining companies and stores it before selling it on. I think it’s a great way to play the theme of growing global energy demand then.

Around 50 nuclear reactors are currently under construction across the world, according to the World Nuclear Association which, when completed, will take the total number close to 500.

Uranium production has been steadily falling in recent years. Indeed, output in the US recently hit its lowest since records began in the late 1940s. But production is tipped to rise over the next few years at least as market fundamentals improve (analysts at GlobalData think output will rise at a compound annual growth rate of 6.2% through to 2025).

This has the potential to weigh on prices of the commodity and, by extension, hit Yellow Cake’s profits. And especially if a raft of new mines are drawn up to come online to exploit the demand boom.

Another dirt-cheap UK share on my radar

At the moment though, there’s a wealth of information suggesting these supply increases will fail to keep pace with rises in demand through to 2035, at least. The switch from power plants that burn fossil fuels, along with the construction of new nuclear-powered ships and submarines across the globe, should all supercharge demand for the radioactive material.

At current prices Yellow Cake trades on a price-to-earnings (P/E) ratio of 2.7 times for fiscal 2022. I think this could make it too cheap to miss. And particularly when you consider that Yellow Cake allows me to play the uranium market without being exposed to the exploration, development and production risks which investors in pure uranium miners have to endure.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild owns shares of TI Fluid Systems. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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