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It’s been an attention-grabbing 12 months for FTSE 100 shares. Whereas the index as an entire has fared effectively, there have been some large variations on the degree of particular person shares.
No person is aware of for certain what 2026 will deliver. However I’m ready to foretell that a few high-quality names which have underperformed in 2025 are about to have a very good 12 months.
Compass: the robust survive
It’s been a tricky 12 months for contract catering agency Compass Group (LSE:CPG). The inventory’s down greater than 10% since January in a 12 months the place the FTSE 100’s up 13%.
US healthcare suppliers – one of many firm’s key markets – are in a tricky place. They’re going through increased prices attributable to wage inflation and managers are on the lookout for methods to offset this.
In consequence, they’re trying to deliver down prices and it is a risk for exterior contractors like Compass. However I feel it is also a possibility.
The agency’s huge scale provides it a price benefit over opponents. And in a world the place prospects are worth aware, having the ability to provide higher worth might be essential.
I subsequently assume there’s an opportunity for Compass to win new enterprise from opponents. And even when this doesn’t include the same old margins, it might be very constructive.
In that state of affairs, I anticipate the inventory can go increased. However even when I’m unsuitable about 2026, I see the corporate’s scale benefit as a pressure to be reckoned with over the long run.
Unilever: moving into gear
Unilever (LSE:ULVR) shares have largely gone nowhere this 12 months. And the dividend hasn’t been sufficient to cease the inventory underperforming the FTSE 100 on a complete return foundation.
In a transfer that feels prefer it’s been coming for a very long time, the corporate’s lastly divested its ice cream division. Given the excessive capital necessities, I feel it is a good transfer.
Importantly, the agency’s CEO has acknowledged an intention to push on with reworking the enterprise. So I’m anticipating to see extra growth-focused initiatives coming in 2026.
Shopper spending is beneath stress proper now and this might be a difficulty for Unilever within the 12 months forward. It’s not laborious for patrons to change to cheaper merchandise in the event that they need to. That’s a threat, however I’m anticipating the agency’s latest strikes to end in increased margins. And indicators of progress on this entrance might assist push the inventory increased subsequent 12 months.
The corporate isn’t naturally a dynamic development enterprise, however the board’s introduced within the new CEO to push issues alongside. So I feel the inventory appears attention-grabbing each in 2026 and past.
Funding alternatives
Even the very best companies undergo difficult durations. However for firms with sturdy aggressive benefits, these will be shopping for alternatives. I feel each Compass Group and Unilever – for various causes – fall into this class. And that’s why I anticipate each to do effectively each within the 12 months forward and additional into the long run.
I already personal Unilever shares in my portfolio, so I’m favouring Compass for the time being as a inventory to think about shopping for in 2026.
