PepsiCo, Delta, and Micron Stocks to Watch Amidst Earnings Season

The S&P 500 Index has experienced fluctuations over the past month, influenced by shifts in energy and artificial intelligence sectors. As the earnings season commences, several stocks, including PepsiCo, Delta Air Lines, and Micron, are drawing significant attention from investors.

PepsiCo's Upcoming Earnings Report

PepsiCo, a leading company in the beverage and snack industry, plans to announce its financial results on July 9. Currently in a correction phase, the company's stock has decreased by over 15% from its peak earlier this year. In the previous quarter, PepsiCo reported revenues of $19.44 billion, surpassing the consensus estimate of $18.94 billion. The North American food segment showed an increase in volume for the first time in two years. Analysts are cautious, with expectations for the upcoming report suggesting a revenue of $23.96 billion, representing a 5.4% increase from the same period last year.

Delta Air Lines and Geopolitical Impacts

Delta Air Lines, the largest airline group in the United States, continues to perform strongly, with its stock price near historical highs after an 83% rise over the past year. The company will unveil its quarterly results next week, offering more details on how the US-Iran conflict has influenced jet fuel prices. Unlike some competitors, Delta benefits from owning a refinery, allowing it to produce its own jet fuel. Analysts project a 12.8% rise in revenue to $18.78 billion, with earnings per share expected to decrease from $2.1 to $1.48.

Micron Faces Investor Skepticism

Micron, a major player in the High-Bandwidth Memory (HBM) sector, is under scrutiny following investor Michael Burry's decision to short the stock. Burry argues that the company is overvalued and predicts a downturn once the artificial intelligence boom wanes. Despite this, Micron's recent earnings report highlights a 300% rise in revenue, reaching $41 billion in the third quarter. Management anticipates $50 billion in revenue for the fourth quarter, with gross margins projected at 86%.

Other notable S&P 500 stocks to monitor next week include Hyatt Hotels, Cintas, and Progressive, as market conditions continue to evolve.