There’s been a lot of focus on the potential to expand our EU relationship, which could improve the deficit ($35B in 2025)…

… should the bloc look to keep growing its purchase of natural resources from us and potentially invest directly in new supply.

With a renewed focus on defence and higher NATO spending targets, our aerospace sector should benefit too…

… leaving companies like Magellan (MAL) and Bombardier (BBD-B) well-positioned, given both the jet maker...

… and advanced manufacturer have a meaningful foothold in the European market.

That growth is arguably priced in, with the pair trading near peak forward multiples…

… but a more under the radar opportunity might lie in the energy sector, which represents a significant portion of the EU’s total imports.

While there’s a longer-term LNG play, the shift away from Russian gas supply…

… combined with the US-Iran conflict has driven TTF benchmark prices up nearly 3x YTD. Tourmaline (TOU) stands to benefit from this increase…

… with management calling out a $50M FCF benefit for every $1/Mcf move in 2026, which grows to $70M in 2027. With geopolitical tensions flaring up recently…

… a sustained elevation in prices would translate to hundreds of millions in additional cash generation, which could be enough to get the stock moving - even if international markets only account for ~7% of nat gas production.

New home prices declined 0.1% sequentially in August on broad-based compression at the provincial level…

… while the magnitude of Y/Y change is moderating, with this print showing the smallest decrease so far in 2026 at 2%.

With unsold inventory declining and new unit absorption improving, the conditions for continued improvement are there on the supply side - let’s see how the demand side plays out.

Tecsys (TCS) added another 8% on Friday, bringing its total run since Q1 earnings to over 25% - as investors dig into the composition of revenue growth...

… and see a core SaaS business compounding at >20%. With Q1 bookings hitting the second highest level on record…

… and a SaaS backlog of ~$260M, there’s runway for that growth to continue…

… as the company transitions to a more predictable, profitable model over time.

Should it be able to execute, there’s likely still room in the multiple - with the stock trading below its long-term average valuation…

… and at a major discount to large cap peers like Manhattan Associates (MANH), despite having similar growth profiles.

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