The “Magnificent Seven” tech stocks have been a hot topic lately, thanks to the outsized influence these mega-caps have had on the broader market's overall returns. The Mag 7 - a lineup that unofficially includes mega-cap names Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Apple (AAPL), Meta (META), Alphabet (GOOGL), and Tesla (TSLA) - gained a staggering $5.1 trillion in total market cap during 2023. Collectively, U.S.-listed stocks would have advanced by just 12.6% last year without the Magnificent Seven's influence, compared to 23.3% with their returns included.
Not to be outdone, European markets have their own supergroup of influential stocks, too. Europe's answer to the Magnificent Seven are the GRANOLAS, a term initially coined back in 2020 by Goldman Sachs (GS). The members of this high-powered acronym include well-known names to any investor - GSK (GSK), Roche (RHHBY), ASML (ASML), Nestle (NSRGY), Novartis (NVS), Novo Nordisk (NVO), L'Oreal (LRLCF), LVMH (LVMUY), AstraZeneca (AZN), SAP (SAP) and Sanofi (SNY) - though the GRANOLAS offer a more distinct tilt toward healthcare and consumer discretionary stocks than the tech-heavy Mag 7.
