2 TSX Shares traded at 40% discounts for a limited time

The markets are going up again. Cheap stocks are hard to find. But if you dig deep, there are fantastic companies that trade deep discounts.

The two titles below are known for their high quality. Due to short-term pressures, the shares are trading at a 40% discount. If you are looking for cheap stocks, read on.

This is a monopoly

Everyone wants to have a monopoly. These companies achieve high returns over extended periods because they have permanent competitive advantages.

When it comes to monopoly shares, Enbridge (TSX: ENB) (NYSE: ENB) is a clear choice. This company won’t go away for a long time.

Enbridge is a pipeline company. Pipelines are like toll roads. That is, they are great for making money. If fossil fuel producers want to ship their production quickly and safely, they often have to go through Enbridge.

The best part is that pipelines are incredibly expensive to build. We are talking about millions of dollars per kilometer. You also need to obtain regulatory permits and clearances which could take years or even decades. All of this contributes to reducing the availability of pipelines. Canada has had a shortage of pipelines for a long time.

Stocks of gas pipelines benefited from this shortage of supply. As the largest pipeline operator in North America, Enbridge has taken a lion’s share of the profits. Fossil fuel producers need to bring their production to market and too often Enbridge is the only game in town.

Due to the COVID-19 pandemic, energy prices have dropped dramatically. Oil prices have fallen by a third since the start of the year, putting pressure on Enbridge’s customer base. In turn, this brought ENB shares down 40% from all-time highs.

Once the pandemic subsides, conditions should quickly normalize. While this may take a year or two, in the meantime, you can settle for the 8% dividend, remaining patient until the discount narrows.

This action is too cheap

Brookfield Property Partners (TSX: BPY.UN) (NASDAQ: BPY) is another company hit hard by the COVID-19 crisis, but in the long run it should escape without too much permanent damage.

As the name suggests, Brookfield Property owns real estate. This isn’t just real estate – it’s one of the best properties in the world, like First Canadian Place in Toronto and Canary Wharf in London.

The coronavirus pandemic has impacted rental receipts, especially as companies have switched to work-from-home installations and retailers have taken care of government lockdown orders. This will affect the short-term value of the properties, but if you have a long-term mindset, you can take advantage of it.

At this time, Brookfield Property shares are trading at a 40% discount on the underlying value. If the world suddenly returns to normal, you could almost double your money with these stocks.

Obviously, the world will not return to normal anytime soon. It may take several years, but that won’t stop stocks from advancing early.

At this moment, the wave is yet to come. Investors remain harsh on companies directly affected by COVID-19. But like Enbridge, Brookfield Property has a healthy dividend, coming in at 6.5%. You can block the discount and remain patient for the increase.

The Motley Fool owns stock and recommends Enbridge. The Motley Fool recommends Brookfield Property Partners LP. Silly contributor Ryan Vanzo has no position in any of the titles mentioned.