GRANOLAS: The European Stocks That Rival the Magnificent Seven in Returns and Safety – Find Out How to Invest Now!

PARIS, France – While tech giants like Amazon and Apple have dominated headlines as the “Magnificent Seven,” another group of companies, known as GRANOLAS, has been quietly keeping up with lower risk. In 2020, Goldman Sachs coined the term GRANOLAS to refer to the largest European companies at the time.

The GRANOLAS group includes the likes of GSK, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH, AstraZeneca, SAP, and Sanofi. These companies have performed just as well as the highflying Magnificent Seven, despite trading at lower risk.

These companies have shown a strong fourth-quarter reporting season, with Novo Nordisk’s success with weight-loss drugs and ASML’s surge in microchip-equipment making machines being notable. However, L’Oreal has disappointed in part due to its struggles in China.

In total return terms since January 2021, the GRANOLAS grouping has kept pace with the Magnificent Seven, with a 63% return and volatility that is on average twice as low. They trade at 20 times earnings versus 30 for the Magnificent Seven, making them a more cost-effective option for investors.

According to strategists led by Guillaume Jaisson, these stocks trade at a premium to the market because they offer strong and predictable growth. This makes them an attractive option, particularly when global GDP growth is expected to be below 3% over the next five years.

Despite being a world filled with exchange-traded funds, investors looking for exposure to the GRANOLAS theme would have to buy each stock individually, as Goldman has not created a fund to trade on its moniker. This leaves investors with a unique opportunity to gain access to these companies and potentially benefit from their strong and consistent performance.