Prediction: 2 FTSE stocks could outperform the S&P 500 between now and 2030

Compared to S&P 500, FTSE stocks have generally delivered impressive performance lately. Driven by AI-mania and rallying tech stocks, the US market has seen impressive growth recently.

However, all that may soon change. Trump has promised tariffs that leave the future of the US economy in question. If things don’t go as planned, the performance of the S&P 500 could decline. Both Goldman Sachs again JP Morgan are bullish on the index’s future, expecting annual growth of only 6% at best over the next decade. The forecast is partly due to the belief that the index is overvalued.

Here in old Blighty, we’ve never seen such a dramatic return for top tech stocks. But we have a wealth of well-established high-quality businesses with low volatility and reliable returns. Therefore, a sluggish US economy could make way for impressive growth at home.

Investors may want to consider the following two FTSE stocks as a hedge against potential volatility abroad.

International Consolidated Airlines Group

The parent company of British Airways, International Consolidated Airlines Group (LSE: IAG), has been performing well recently, gaining a whopping 122.6% in the past year alone. But the gains only go a short way in making up for the losses incurred during the Covid period: it has fallen by 23.6% in five years.

With air travel now back on track and busier than ever, I think the stock has more fuel in the tank. Back in 2018, analysts were optimistic, eyeing prices of up to 600p for the stock. That would almost double the current price.

But the threat did not go away completely. Covid has taught us a lot about dealing with a pandemic but not enough to stop travel bans in the event of a similar infection. If that happens, IAG stock could easily fall 70% like it did in early 2020.

Better planning may have reduced the impact but some losses were inevitable.

Barring any further travel disruptions, it could reach 600p by 2030. When it arrives, it will equate to an annual return of 13.2%.

Alpha Group International

Alpha Group International (LSE: ALPH) is little known FTSE 250 a stock that can benefit from disruptions in international trade. The company specializes in foreign exchange risk management for corporate businesses.

It is a very small, £954.7m-capitalisation company with less than 500 employees and £53.3m of revenue. But recent growth has been impressive, with revenue up 19% year-on-year and net income up 13.3%. Forecasters expect earnings per share to reach £1.15 by 2026 – a 70% rise from current levels.

If the £22 share price follows suit, it could reach £40 in the next five years, an annual return of 12.47%. That’s not an unreasonable estimate, considering the price doubled between the summers of 2020 and 2021. Since then, return on equity (ROE) has increased from 13.9% to a whopping 48.15%.

Despite these impressive figures, growth has been slow recently. This may be due to economic challenges in the financial sector, especially high interest rates that are restricting spending. If the rate cut happens this year it may help to end these problems but if not, growth may stop again.

I think both stocks should be considered strong contenders to outperform the S&P 500 in 2030.