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Europe’s magnificent 11 stocks – the Granolas

Continent’s top firms drove most of European equity gains last year

Drugmaker Novo Nordisk is the biggest member of the Granolas. Photograph: Sergei Gapon/AFP via Getty Images

Proinsias O'Mahony's face
Proinsias O'Mahony
Mon Mar 18 2024 - 05:00

Forget America’s magnificent seven: increased attention is being paid to Europe’s stock market high-fliers – the so-called Granolas. Goldman Sachs coined the term in 2020 when highlighting 11 European high-growth stocks – GSK, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH, AstraZeneca, SAP, and Sanofi.

Goldman recently noted that while the magnificent seven have dominated the US market in recent years, the Granolas have dominated in Europe, accounting for 60 per cent of European equity gains over the last year. Similarly, strong growth means that like the magnificent seven, the Granolas are notably more expensive than their European brethren.

Still, the Granolas are very different from America’s magnificent seven.

All but one (Tesla) of the latter are trillionaire stocks, whereas the most valuable of the Granolas is drugmaker Novo Nordisk, which is valued at some €540 billion.

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America’s big seven are essentially technology stocks (not everyone agrees electric car maker Tesla deserves that label, but that’s a separate argument). In contrast, the Granolas are from multiple sectors, with constituent members ranging from drugmakers and luxury producers to food companies. Still, it’s true to say that like the US, Europe’s stock market is becoming increasingly concentrated. The Granolas now account for about a quarter of the Stoxx 600′s market capitalisation, so expect more talk of Europe’s “magnificent 11″ in 2024.

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