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2 cheap UK shares I’d buy in my ISA in 2021 for the new bull market!

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Speak it very quietly. But I reckon now’s a great time to invest for the new bull market.

Market appetite for London-based stocks has stagnated in recent sessions. The British economy has been the worst hit of all developed nations following the Covid-19 crisis. And intensifying lockdowns in 2021 has raised fresh fears for UK-focussed shares. The emergence of Brexit trade disruption has done little to remedy investor nerves, either.

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I’m buying despite the Covid-19 gloom!

I won’t stop buying UK shares despite these problems, however. There’s still a great chance that the global economy will bounce strongly in the second half of 2021 following the mass rollout of a coronavirus vaccine. A strong new bull market could be just around the corner, then. One that could drive the prices of many UK stocks through the roof and make some investors a fortune in the process.

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There’s another good reason why I think now is a great time to go shopping for UK shares. Plenty of quality stocks continue to trade at unmissable prices following the stock market crash of early 2020. Here are two cut-price stocks I think could boom in value during the eventual economic upturn:

One cheap UK share on my watchlist

Investor demand for TI Fluid Systems has soared over the past four months. But despite its pumped-up share price, I reckon the auto component builder still looks mighty cheap on paper. City analysts predict a near-300% improvement in annual earnings in 2021. This leaves this UK share trading on a forward price-to-earnings growth (PEG) ratio of 0.1.

It’s perhaps no surprise why the number crunchers are so bullish. TI Fluid Systems is the world’s number one supplier of brake and fuel lines and the number three manufacturer of plastic fuel tanks. This, along with its broad geographic footprint (operating out of 28 countries), puts it in the driving seat to ride the eventual recovery in global car sales and enjoy monster profits growth.

A cut-price travel titan

International Consolidated Airlines Group (LSE: IAG) is another top UK value share for the new bull market. The British Airways owner has recently bulked up its exposure to the high-growth, low-cost end of the market. It also stands to gain from lower competitive pressures as its rivals go to the wall or scale back their operations due to ongoing travel bans.

On this front the FTSE 100 flyer’s transatlantic operations received a boost this week. News emerged that Norwegian Airlines was scrapping its long-haul routes and cutting 1,000 jobs at London Gatwick airport.

IAG is set to endure a year of losses in 2021, City analysts say. But it will bounce back from losses of 14 euro cents per share to enjoy earnings of 25 cents in 2022, current forecasts indicate. There’s clearly a long road ahead. But a price-to-earnings (P/E) ratio of 6 times for 2022 makes this UK share an attractive value pick for a new bull market.

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Royston Wild has no position in any of the shares mentioned. 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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