1. GRANOLAS group, including GSK, delivered weak 12-month returns compared to benchmarks. 2. GSK is part of high-profile European stocks now underperforming investor expectations. 3. Historical studies reveal Top Dogs, like GSK, often lag behind sector peers. 4. Investors are urged to be cautious, as popularity may mask long-term performance setbacks.
GSK's inclusion in the GRANOLAS, which showed a mere 1.9% return versus a 12.3% benchmark, raises caution. Historical evidence from Arnott's studies confirms that top market players often underperform, suggesting potential downward pressure.
Even though GSK is just one part of a broader group, its historical underperformance compared to sector peers could prompt re-assessment by investors, affecting its price moderately.
The underperformance pattern for Top Dogs is observed over multiple years. This long-term trend implies that any negative revaluation of GSK may take root gradually.