Airtel Africa (LSE: AAF) is the top-performing FTSE 100 stock in my portfolio currently and it’s already gained a further 10% this month.
Another one of my favourites, albeit nowhere near the top, is GSK (LSE: GSK). After months of declines, the healthcare group has been making a recovery. It’s up an impressive 11.6% over the past month.
They’re very different companies but both offer unique qualities, each helping to bolster my portfolio in their own way.
An unexpected growth opportunity
As an investor who prefers the safety of defensive income stocks, Airtel Africa is an odd choice for me. The telecoms provider operates in what many would consider risky areas on the African continent.
However, the risk has paid off. Up almost 200% in the past year, the stock is outshining even the largest S&P 500 tech giants in my portfolio.
Sadly, the growth may not be sustainable. The recent surge seems largely due to easing currency exchange pressures and tariff increases in Nigeria. Those same pressures could easily flip back in the other direction in such a volatile region. That’s a key risk I need to keep an eye on.
Still, strong financials are backing some of the growth. Half-year revenue rose about 26% to nearly $3bn, while profit after tax climbed to $376m. With a rapidly expanding network, growing margins and rising dividends, it seems to be heading in a good direction.
The price may be a bit overvalued now but it’s still worth considering for its long-term prospects in Africa.
Resilient healthcare
GSK has recovered 38% after hitting a 52-week low on April’s trade tariff news. It’s now only a few pennies away from its five-year high of 1,800p achieved in May 2024.
The biotechnology firm’s price was boosted by a strong set of third-quarter results and an improved outlook for 2025. The company reported sales of £8.5bn, up around 7% year on year, with particularly strong performance from its Speciality Medicines division, which grew 16% to £3.4bn.
Its oncology sales were a standout success, surging nearly 39%. That shines a light on the growing strength of its new drug portfolio after offloading its pharmaceuticals arm.
The performance is supported by encouraging clinical updates, particularly for its respiratory biologics and RSV vaccine.
But I didn’t buy GSK shares for their growth prospects. They’re intended to add defensiveness to my portfolio, along with a decent bit of income from the 3.6% dividend yield.
While the growth is welcome, history shows that the stock is highly cyclical and will likely dip again in the coming year. Still, for income and defensiveness, it’s a worthy consideration, in my book.
Final thoughts
It’s impossible to accurately predict the direction of stocks. At times, I’ve been pleasantly surprised, at others, I’ve been sadly disappointed.
That’s why I maintain a highly diversified portfolio of shares from a wide range of industries. These two have done well this month but could easily slip in the next.
However, overall, my portfolio typically enjoys steady growth as each sector and stock plays its part.
