Europe's GRANOLAS: How do they perform against the US's Magnificent Seven?

Mega-cap stocks have continued strong performance in 2024 amid geopolitical tensions. The Euro Stoxx 50 is up 9%, while the top 100 US stocks rose 19%. The elite European GRANOLAS saw a 16.6% average return, but the US's Magnificent Seven doubled that with 38%, driven by Nvidia's AI rally.

After a strong showing in 2023, mega-cap stocks worldwide have continued to perform well in 2024, providing a safe haven for investors amid ongoing geopolitical tensions and economic uncertainty.

The Euro Stoxx 50 index, which includes the 50 largest European companies, has increased by 9% since the beginning of the year. In comparison, the index of the 100 largest American stocks has surged by 19%.

Notably, both indices have outperformed their broader counterparts, with the Euro Stoxx 600 and the S&P 500 rising by 7% and 14%, respectively.

But what has occurred at the very pinnacle of these indices when looking at the biggest stocks in both sides of the Atlantic?

A useful comparison is between the elite European stocks, termed GRANOLAS, and the US tech giants, known as the Magnificent Seven.

For those unfamiliar with these names, GRANOLAS is an acronym coined by Goldman Sachs during the first European lockdown in 2020, representing the largest European companies by market cap at that time: GSK, Roche, ASML Holding, Nestlé, Novartis, Novo Nordisk, L'Oréal, LVMH, AstraZeneca, SAP, and Sanofi. As of late June 2024, these companies collectively boast a market cap of nearly €3 trillion.

The Magnificent Seven, comprising tech titans such as Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms and Tesla, have a combined market cap of $15.8 trillion (€14.8 trillion).

Since the start of the year, the GRANOLAS have averaged a 17% return. Novo