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It’s been an interesting year for FTSE 100 shares. While the index as a whole has fared well, there have been some big variations at the level of individual stocks.
Nobody knows for sure what 2026 will bring. But I’m prepared to predict that a couple of high-quality names that have underperformed in 2025 are about to have a good year.
Compass: the strong survive
It’s been a tough year for contract catering firm Compass Group (LSE:CPG). The stock’s down more than 10% since January in a year where the FTSE 100’s up 13%.
US healthcare providers – one of the company’s key markets – are in a tough position. They’re facing higher costs due to wage inflation and managers are looking for ways to offset this.
As a result, they’re looking to bring down costs and this is a threat for external contractors like Compass. But I think it could also be an opportunity.
The firm’s massive scale gives it a cost advantage over competitors. And in a world where customers are price conscious, being able to offer better value could be crucial.
I therefore think there’s a chance for Compass to win new business from competitors. And even if this doesn’t come with the usual margins, it could be very positive.
In that situation, I expect the stock can go higher. But even if I’m wrong about 2026, I see the company’s scale advantage as a force to be reckoned with over the long term.
Unilever: getting into gear
Unilever (LSE:ULVR) shares have largely gone nowhere this year. And the dividend hasn’t been enough to stop the stock underperforming the FTSE 100 on a total return basis.
In a move that feels like it’s been coming for a long time, the company’s finally divested its ice cream division. Given the high capital requirements, I think this is a good move.
Importantly, the firm’s CEO has stated an intention to push on with transforming the business. So I’m expecting to see more growth-focused initiatives coming in 2026.
Consumer spending is under pressure right now and this could be an issue for Unilever in the year ahead. It’s not hard for customers to switch to cheaper products if they want to. That’s a risk, but I’m expecting the firm’s recent moves to result in higher margins. And signs of progress on this front could help push the stock higher next year.
The company isn’t naturally a dynamic growth business, but the board’s brought in the new CEO to push things along. So I think the stock looks interesting both in 2026 and beyond.
Investment opportunities
Even the best businesses go through challenging periods. But for companies with durable competitive advantages, these can be buying opportunities. I think both Compass Group and Unilever – for different reasons – fall into this category. And that’s why I expect both to do well both in the year ahead and further into the future.
I already own Unilever shares in my portfolio, so I’m favouring Compass at the moment as a stock to consider buying in 2026.
