International stocks that should withstand the turbulence of the stock market

Despite a volatile market, Alex Illingworth of Goshawk Asset Management identifies three unique opportunities in international stocks

Despite a tumultuous global environment in 2025, equity markets have held up well, serving as a reminder of how well-run companies frequently handle setbacks and difficulties. And the issues they are dealing with are not limited to global events. For equity investors, the bar is rising due to consistently high bond yields.

They become less interested in stocks when bank cash returns and relatively safe bonds are high.

In an environment of uncertainty like this, you need to focus more than ever on quality companies, valuation discipline and portfolio diversification. In these areas, the Goshawk Global Balanced Fund UCITS ETF (LSE: ROE) performs admirably. Three holdings are shown below to highlight the variety of opportunities in international stocks.

Three international stocks for your holdings.

In line with government reforms, Mitsubishi Electric (Tokyo: 6503), a long-standing Japanese conglomerate, has made significant strides in corporate governance in recent years. A return-on-invested-capital strategy is being used by the business to increase profitability. Initiatives for restructuring have resulted from this, such as the vehicle-electrification unit being spun off to concentrate on higher-margin activities like factory automation and air conditioning (essential for data centers).

Its expanding defense business, which uses cutting-edge radar technology, also contributes to its growth. This company has a significant balance-sheet value in addition to being reasonably priced by conventional measures. Traditional value investing relies heavily on the latter, and according to our analysis, the stock is currently trading far below the cost of rebuilding its various franchises.

A group of businesses with numerous years of quality and compounding cash flows are among the fantastic opportunities this market is offering. These stocks have fallen behind in the recent market for growth and momentum.

One such company is Thermo Fisher (NYSE: TMO). As a pioneer in analytical tools and services for environmental monitoring, clinical research, and diagnostics, it stands out. Governmental organizations, research institutes, and pharmaceutical companies are among the clients. It produced yearly free cash flow growth of about 15% between 2013 and 2023.

The trend has been strengthened by recent policy headwinds in research funding, and growth has slowed since the pandemic. The Trump administration has made this particularly noticeable. Management has continued to prioritize enhancing the core business and growth rate over acquisitions. The company reiterated last year that it expects long-term organic revenue growth guidance of 7-9 percent. This, along with the goal of strong cash generation, lends credence to the idea that Thermo Fisher is still cheap given its performance history.

Our desire for stability and growth on a global scale at affordable prices has motivated us to establish a long-term presence in Singapore Telecommunications (Singapore: Z74). The business is excellent at reinvesting the robust cash flow it produces domestically into overseas markets with faster growth, most notably through Bharti Airtel in India and its holdings in Australia, the Philippines, Indonesia, and Thailand. As competition is reduced, Indian mobile telephony benefits from increased free cash flow.

Additionally, the group's future growth is supported by investments in data centers and the adoption of 5G. Selling non-core assets to finance new expansion and increase shareholder returns is another skill that Singapore Telecommunications has mastered. The current dividend yield of 4 percent is well-supported and demonstrates the ongoing dedication to payments.