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In relation to development, the dialog often circles again to the US. Nonetheless, whereas the S&P 500‘s been the benchmark for international markets for years, in 2025 UK shares are competing toe-to-toe with their American rivals.
In reality, some are comfortably outpacing the pack. So I’ve recognized two FTSE 100 shares to contemplate that not solely maintain their very own however are additionally making vital strikes this yr. That mentioned, for now, I choose one to the opposite.
Airtel Africa
Airtel Africa‘s (LSE: AAF) a wi-fi telecommunications supplier serving 14 nations throughout the continent. It’s not a family identify in Britain, however its share worth efficiency has been not possible to disregard.
After posting better-than-expected quarterly ends in July, the inventory surged to a file excessive of 194.9p. Working revenue climbed 33% in Q1 to $446m, fuelling a rally that’s seen the inventory leap 90% since January. That’s 9 instances the return of the S&P 500.
Even in opposition to US giants, Airtel Africa appears to be like spectacular. AT&T‘s up 26% this yr, Verizon, simply 10%. Forecasts counsel the corporate’s earnings per share may triple over the following three years, whereas income might attain £6.55bn by 2028.
The expansion story’s compelling, however there are dangers. Airtel Africa carries vital foreign-currency debt. A pointy devaluation of the Nigerian naira or different native currencies may inflate reimbursement prices and dent earnings. Volatility’s due to this fact a part of the package deal.
Nonetheless, with Africa’s wi-fi and cellular knowledge markets increasing quickly, I see this as a development inventory with long-term potential.
Smith & Nephew
Smith & Nephew (LSE: SN.) develops implants for joint restore and superior wound care options. Earlier this month, the agency unveiled half-year buying and selling outcomes that delivered a nice shock. Buying and selling revenue rose 11.2%, and a £500m share buyback programme was introduced. Buyers responded with enthusiasm.
To this point in 2025, shares are up 36% — triple the S&P 500’s return. Towards US friends, it’s in a fair stronger place. Stryker‘s up simply 5.36% whereas Zimmer‘s truly fallen 3.5%. On valuation, the inventory additionally appears to be like low cost, with a price-to-earnings development (PEG) ratio of solely 0.56.
What stands out is the operational progress. Earnings have surged 55% and web margins have widened to 7% from 4.7%, displaying the influence of price efficiencies. Debt’s well-covered, money circulate appears to be like robust and analysts at Jefferies even known as it a safe-haven inventory within the face of wider tariff issues.
That mentioned, there are some dangers. Return on capital employed (ROCE) has fallen sharply over the previous 5 years, from 14% to simply 6%, and its orthopaedics division’s been shedding market share within the US. This raises issues about long-term competitiveness.
Whereas I believe Smith & Nephew’s defensive qualities are engaging and make it one to consider, I need to see enhancements in effectivity and market share earlier than seeing it as a long-term winner.
The underside line
The FTSE 100’s been stepping up in 2025, and these two UK shares show it. Airtel Africa appears to be like like a high-growth play on a booming market, albeit with forex dangers. Smith & Nephew in the meantime, presents resilience and stable money circulate however must deal with some structural challenges.
Both approach, it’s refreshing to see UK shares not simply maintaining with the S&P 500 however overtaking it in sure areas.
