GRANOLAS stocks in Europe have mixed performance: some sectors like tech and pharma have done well, while luxury giants struggle in China

From Morningstar: 2024-08-12 10:51:00

GRANOLAS stocks in Europe have had a mixed performance this earnings season, with a group of eleven large companies spanning various sectors including tech, pharma, and luxury goods. SAP has been a standout, posting the highest return and driving market performance with strong revenues from its cloud business. Pharma stocks like Novo Nordisk have also rallied due to weight loss drug successes. On the other hand, luxury giants LVMH, L’Oreal, and Nestle have struggled due to a consumer spending slowdown in China.
Some fund managers are finding opportunities in sectors outside the GRANOLAS group such as defense and banking. Companies like Norwegian defense group Kongsberg Gruppen and Spanish defense-software business Indra Sistemas have reported significant returns due to increased demand for their products. In the banking sector, Italian and Spanish names like UniCredit and Banco de Sabadell have seen positive performance, reflecting the economies they operate in and the duration of their net interest margins.



Read more at Morningstar: Why GRANOLAS Performance Has Been So Patchy