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 –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.
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.