In a market climate dominated by continuous change, uncertainty, trade tensions, and geopolitical headwinds, smart investing means identifying opportunities that rise above the noise. Despite volatility, 2025 presents a unique window to look beyond fear-driven headlines and into the fundamentals of value creation.
Economic overview
The current market turbulence is largely a result of policy decisions by the U.S. Administration, particularly around tariffs and trade. These moves have introduced considerable uncertainty and led to weakening sentiment in leading indicators.
However, because the volatility is self-inflicted, it is also reversible. Markets are hypersensitive to any shift in U.S. tone, and recent signs like the 90-day tariff pause suggest potential room for negotiation, especially with China.
This environment is creating selective and attractive entry points for investors. While near-term uncertainty is real, any constructive developments in trade or policy reversals could be a powerful catalyst for market recovery.
Equity markets overview
Equities have had a turbulent year as the “America First” agenda morphed into a “Sell America” wave. Elevated U.S. valuations corrected as investors reallocated capital to European and Chinese markets, which have outperformed YTD. The tech sector, once boosted by the AI rally, has been hit hard post-DeepSeek, with discretionary and communication names following suit.
While markets remain fragile and highly sensitive to geopolitical and macroeconomic signals, recent panic-driven selloffs have created tactical opportunities. Volatility levels have reached heights not seen since the pandemic, but unlike 2020, many of these moves seem unjustified on fundamentals.
Highlight on 5 thriving companies
Despite turbulent times some companies are leveraging emerging opportunities to thrive, making them potentially compelling investment options to put on your watchlist. This article puts the spotlight on 5 such companies, derived through the below structured 3-step analysis:
- Sectoral screening: A sector-specific screening model is employed, incorporating a range of financial and operational metrics to assess the long-term viability of companies. Firms exhibiting consistently positive trends across these metrics are shortlisted for deeper evaluation.
- Financial modelling & common-size analysis: Detailed financial models are developed for selected companies to incorporate historical performance data and include a comprehensive common-size analysis to facilitate cross-sectional and time-series comparisons.
- One-year price target estimation: A one-year price target is determined using a Discounted Cash Flow (DCF) approach. The initial Weighted Average Cost of Capital (WACC) used to discount projected free cash flows is tailored for each company. It reflects factors such as the firm’s business model, geographical distribution of sales, functional currency risk-free rate and outstanding leverage profile. DCF models’ assumptions are regularly benchmarks against the most recent earnings releases from companies.
Alphabet Inc.
Alphabet finds itself at the center of multiple headwinds such as antitrust concerns, AI competition, and capital outflows from U.S. equities. But under the surface, its core growth-driving businesses like Google Cloud and YouTube continue to deliver strong results.
Cost discipline is improving, and the stock has been heavily repriced, offering an attractive entry point. Even in the event of a DOJ-mandated restructuring, shareholder value could be unlocked from a sum-of-parts valuation. Alphabet’s fundamentals and long-term growth story remain solid.
| Sector | Communication services |
| Country | U.S. |
| Current price | $163.23 |
| Price target | $200 |
| Upside | 22.5% |
Alibaba Holdings
After a turbulent period in Chinese markets, Alibaba is regaining investor confidence. Economic stimulus, improved government-corporate relations, and a clearer AI strategy are helping the company turn a corner. Its international expansion, particularly via Trendyol, positions Alibaba as more than just a domestic giant.
While geopolitical and regulatory risks remain, the stock is significantly undervalued relative to peers and offers a powerful rebound opportunity.
| Sector | Consumer discretionary |
| Country | China |
| Current price | $127.66 |
| Price target | $150 |
| Upside | 17.5% |
Fiserv
Fiserv combines finance and technology in a way that is both future-proof and resilient to macro uncertainty. Its recent earnings disappointment was met with an overreaction in the market, opening an attractive entry point.
As a major player in the infrastructure behind digital payments, Fiserv is set to benefit from long-term trends in fintech adoption. This is a strong tactical play for investors looking to capitalise on near-term volatility.
| Sector | Payment processors |
| Country | U.S. |
| Current price | $184.95 |
| Price target | $235 |
| Upside | 27.1% |
Deutsche Telekom
Deutsche Telekom’s growth is being driven by its stake in U.S.-based T-Mobile. The company is solid across profitability, balance sheet strength, and valuation metrics. It also benefits from insulation against trade disputes and macro shocks.
As Europe positions for rate cuts ahead of other economies, Deutsche Telekom could offer both yield and upside.
| Sector | Telecommunications |
| Country | Germany |
| Current price | €32.20 |
| Price target | €38 |
| Upside | 18.0% |
Adyen
A European fintech leader, Adyen is scaling rapidly in the global payments space. Factors such as strong institutional backing, exceptional growth in payment volumes, and increasing relevance in the digital economy, put it on our watchlist.
While more volatile than peers, its fundamentals and market positioning support a strong growth narrative in 2025.
| Sector | Payment processors |
| Country | Netherlands |
| Current price | €1484.40 |
| Price target | €1800 |
| Upside | 21.3% |
This analysis was conducted by Cosmin Alexandru Mizof, Investment Manager at Calamatta Cuschieri Moneybase.
Navigating investments in 2025
Markets in 2025 are likely to remain dynamic, shaped by policy reversals, inflationary shifts, and sector rotations. Rather than trying to predict every macro turn, focusing on high-quality companies with solid earnings power, scalable models, and undervalued entry points may be the best path forward.
These five picks represent a strategic mix of resilience, global diversification, and future-facing growth potential. Investors are still encouraged to do their own research or seek guidance from an expert advisor to set up their ideal investment portfolio.
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This information document is issued by Calamatta Cuschieri Investment Services Ltd (“CCIS”) of Ewropa Business Centre, Triq Dun Karm, Birkirkara, BKR9034, Malta (C13729). CCIS is licensed to conduct Investment Services under the Investment Services Act in Malta by the Malta Financial Services Authority.
The value of the investment may go down as well as up and may be affected by changes in currency. Any performance figures quoted refer to the past and past performance is not a guarantee of future performance nor a reliable guide to future performance. This information is being provided solely for information purposes and should not be deemed or construed as investment advice, advice concerning particular investments, advice concerning investment decisions, tax, legal, or any other ancillary regulatory advice. CCIS does not accept liability for actions, proceedings, costs, demands, expenses, damages, and losses suffered by persons as a result of information, views, or opinions appearing on this document. No person should act upon any opinion and/or information in this document without first obtaining professional advice.
