These soaring UK shares are smashing the S&P 500

With regards to progress, the dialog often 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. 

The truth is, 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 12 months. That mentioned, for now, I favor 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 value efficiency has been inconceivable to disregard.

After posting better-than-expected quarterly leads to July, the inventory surged to a report 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 seems spectacular. AT&T‘s up 26% this 12 months, Verizon, simply 10%. Forecasts counsel the corporate’s earnings per share may triple over the subsequent 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 reimbursement prices and dent earnings. Volatility’s due to this fact a part of the bundle.

Nonetheless, with Africa’s wi-fi and cellular information markets increasing quickly, I see this as a progress 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.

Thus far 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 low cost, with a price-to-earnings progress (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 circulation seems 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 feel Smith & Nephew’s defensive qualities are enticing 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 like a high-growth play on a booming market, albeit with forex dangers. Smith & Nephew in the meantime, provides resilience and stable money circulation however must deal with some structural challenges.

Both manner, it’s refreshing to see UK shares not simply maintaining with the S&P 500 however overtaking it in sure areas.