From Morningstar: 2024-11-06 08:32:04

The “GRANOLAS” stocks, including GSK, Roche, AstraZeneca, and others, have had a mixed performance in 2024, with no clear pattern influencing their stock prices. These companies are highly diversified across various sectors but heavily weighted towards technology compared to the “Magnificent Seven.”

SAP continues to lead the pack, with a year-to-date return of around 57%, driven by strong cloud business growth and customer subscriptions. The company posted total revenue of €8.4 billion in Q3 2024, beating rivals in the enterprise app space. Morningstar metrics for SAP include a narrow economic moat and a 1-star rating.

Novartis, with a wide economic moat, has returned around 8% year-to-date and reported sales growth of 10% in Q3 2024. The company’s attractive balance sheet and clean financials make it an appealing investment option, with a Morningstar rating of 3 stars.

ASML has seen a sharp decline in its share price, falling by nearly 27% in the last 6 months due to slower market recovery and lower sales estimates for 2025. Major customers delaying purchases and geopolitical tensions have impacted the semiconductor giant’s performance, with Morningstar analysts considering it undervalued. In 2025, GRANOLAS stocks are expected to realign, with previous laggards thriving and outperformers facing challenges. Consumer stocks have struggled, but positive signs like Unilever’s sales growth indicate a potential uplift. Analysts predict a shift in performance over the next few months, with underperforming stocks rebounding. LVMH faces challenges with falling revenue and weak organic growth, especially in Asia. Luxury companies are reevaluating their pricing strategies, with uncertain consumer sentiment impacting sales. Despite geopolitical risks, companies like Taiwan Semiconductor Manufacturing Co are seen as less vulnerable due to their technological edge. ASML, known for its precision semiconductor machines, is likely to remain resilient in the face of competition. Investors are cautious about the luxury goods sector, with varying performance among brands based on quality, appeal, and target markets. Market volatility and economic challenges in China continue to affect luxury sales, with the sector facing high risk and potential rewards in the long term. 1. The stock market saw a significant increase today, with the S&P 500 reaching a new record high of 4,600 points. This rise was driven by strong earnings reports from tech giants like Apple and Amazon, causing investors to feel optimistic about the market outlook.

2. In other news, the unemployment rate fell to 4.6% last month, the lowest it has been since the start of the pandemic. Job growth exceeded expectations, with 531,000 new jobs added in October. This positive economic data indicates a strong recovery in the labor market.

3. COVID-19 cases continue to decline nationwide, with a 20% decrease in new infections compared to last week. Health officials credit the high vaccination rates for the drop in cases, emphasizing the importance of continued vaccination efforts to prevent future surges in the virus.

4. The COP26 climate summit concluded with a historic agreement to limit global warming to 1.5 degrees Celsius. Countries committed to ambitious emissions reduction targets, with many pledging to reach net-zero emissions by 2050. The agreement marks a significant step towards combating climate change on a global scale.



Read more at Morningstar: Can The GRANOLAS Stocks End 2024 On A High?