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In terms of development, the dialog normally circles again to the US. Nevertheless, whereas the S&P 500‘s been the benchmark for world markets for years, in 2025 UK shares are competing toe-to-toe with their American rivals.
In actual fact, some are comfortably outpacing the pack. So I’ve recognized two FTSE 100 shares to think about that not solely maintain their very own however are additionally making important strikes this yr. That stated, for now, I desire 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 title in Britain, however its share worth efficiency has been unattainable to disregard.
After posting better-than-expected quarterly leads to July, the inventory surged to a document excessive of 194.9p. Working revenue climbed 33% in Q1 to $446m, fuelling a rally that’s seen the inventory bounce 90% since January. That’s 9 occasions the return of the S&P 500.
Even towards US giants, Airtel Africa seems to be spectacular. AT&T‘s up 26% this yr, Verizon, simply 10%. Forecasts recommend the corporate’s earnings per share may triple over the following three years, whereas income could attain £6.55bn by 2028.
The expansion story’s compelling, however there are dangers. Airtel Africa carries important foreign-currency debt. A pointy devaluation of the Nigerian naira or different native currencies may inflate compensation prices and dent earnings. Volatility’s due to this fact a part of the bundle.
Nonetheless, with Africa’s wi-fi and cell information 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 pleasing shock. Buying and selling revenue rose 11.2%, and a £500m share buyback programme was introduced. Traders responded with enthusiasm.
To date in 2025, shares are up 36% — triple the S&P 500’s return. In opposition to US friends, it’s in an excellent stronger place. Stryker‘s up simply 5.36% whereas Zimmer‘s really fallen 3.5%. On valuation, the inventory additionally seems to be 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 impression of price efficiencies. Debt’s well-covered, money circulate seems to be robust and analysts at Jefferies even known as it a safe-haven inventory within the face of wider tariff considerations.
That stated, 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 considerations about long-term competitiveness.
Whereas I feel Smith & Nephew’s defensive qualities are engaging and make it one to consider, I wish 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 seems to be like a high-growth play on a booming market, albeit with foreign money dangers. Smith & Nephew in the meantime, gives resilience and strong 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.
