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When it comes to growth, the conversation usually circles back to the US. However, while the S&P 500‘s been the benchmark for global markets for years, in 2025 UK shares are competing toe-to-toe with their American rivals.
In fact, some are comfortably outpacing the pack. So I’ve identified two FTSE 100 stocks to consider that not only hold their own but are also making significant moves this year. That said, for now, I prefer one to the other.
Airtel Africa
Airtel Africa‘s (LSE: AAF) a wireless telecommunications provider serving 14 countries across the continent. It’s not a household name in Britain, but its share price performance has been impossible to ignore.
After posting better-than-expected quarterly results in July, the stock surged to a record high of 194.9p. Operating profit climbed 33% in Q1 to $446m, fuelling a rally that’s seen the stock jump 90% since January. That’s nine times the return of the S&P 500.
Even against US giants, Airtel Africa looks impressive. AT&T‘s up 26% this year, Verizon, just 10%. Forecasts suggest the company’s earnings per share could triple over the next three years, while revenue may reach £6.55bn by 2028.
The growth story’s compelling, but there are risks. Airtel Africa carries significant foreign-currency debt. A sharp devaluation of the Nigerian naira or other local currencies could inflate repayment costs and dent earnings. Volatility’s therefore part of the package.
Still, with Africa’s wireless and mobile data markets expanding rapidly, I see this as a growth stock with long-term potential.
Smith & Nephew
Smith & Nephew (LSE: SN.) develops implants for joint repair and advanced wound care solutions. Earlier this month, the firm unveiled half-year trading results that delivered a pleasant surprise. Trading profit rose 11.2%, and a £500m share buyback programme was announced. Investors responded with enthusiasm.
So far in 2025, shares are up 36% — triple the S&P 500’s return. Against US peers, it’s in an even stronger position. Stryker‘s up just 5.36% while Zimmer‘s actually fallen 3.5%. On valuation, the stock also looks cheap, with a price-to-earnings growth (PEG) ratio of only 0.56.
What stands out is the operational progress. Earnings have surged 55% and net margins have widened to 7% from 4.7%, showing the impact of cost efficiencies. Debt’s well-covered, cash flow looks strong and analysts at Jefferies even called it a safe-haven stock in the face of wider tariff concerns.
That said, there are some risks. Return on capital employed (ROCE) has fallen sharply over the past five years, from 14% to just 6%, and its orthopaedics division’s been losing market share in the US. This raises concerns about long-term competitiveness.
While I think Smith & Nephew’s defensive qualities are attractive and make it one to think about, I want to see improvements in efficiency and market share before seeing it as a long-term winner.
The bottom line
The FTSE 100’s been stepping up in 2025, and these two UK shares prove it. Airtel Africa looks like a high-growth play on a booming market, albeit with currency risks. Smith & Nephew meanwhile, offers resilience and solid cash flow but needs to tackle some structural challenges.
Either way, it’s refreshing to see UK shares not just keeping up with the S&P 500 but overtaking it in certain areas.
This story originally appeared on Motley Fool
