The S&P 500 Index has wavered in the last month as energy and artificial intelligence stocks pulled back. It ended the week at $7,483, a few points below the all-time high of $7,620. 

The next few weeks will be important as the earnings season starts. Estimates are that the average earnings growth in the second quarter was 22%, though the final figure will be better than expected. This article explores the top stocks to watch next week, including PepsiCo (PEP), Delta Air Lines (NYSE:DAL), and Micron (NASDAQ:MU).

PepsiCo Stock in a Correction Ahead of Earnings

PepsiCo, the beverage and snacking company, will be in focus as it publishes its financial results on July 9. These results come at a time when it remains in a correction after falling by over 15% from its highest point this year.

The most recent earnings report showed that its revenue and earnings per share were better-than-expected. It made $19.44 billion in Q1, higher than the consensus estimate of $18.94 billion. Notably, its North American food business reported an increase in volume for the first time in two years.

Still, analysts are cautious about the company, with Evercore predicting that it will miss estimates. The consensus view is that its revenue will come in at $23.96 billion, up by 5.4% from what it made in the same period last year.

Delta Air Lines to Provide Update on Impact of US-Iran War

Delta Air Lines, the biggest airline group in the US, has been in a strong bull run, with its stock hovering near its all-time high. It has jumped by over 83% in the last 12 months, helped by its resilient growth.

Delta Air Lines will publish its quarterly results next week, shedding more color on the impact of the US-Iran war that pushed jet fuel prices higher. Unlike other airlines, Delta was better positioned because it owns a refinery, where it turns crude oil into jet fuel. 

Analysts expect its results to show that its revenue jumped by 12.8% to $18.78 billion, while its EPS narrowed from $2.1 per share to $1.48. Its profitability will likely start improving as crude oil prices and jet fuel retreat.

Micron in Focus as Michael Burry Shorts its Stock

Micron, the third-biggest High-Bandwidth Memory (HBM) company, will also be in focus after Michael Burry shorted it. Burry believes that the company is highly overvalued and that it will start to reverse when the AI boom fades. 

His short position disclosure comes at a time when the company is doing well. Its recent earnings showed that its revenue jumped by 300% to $41 billion in the third quarter. The management now predicts that it will make $50 billion in the fourth quarter, with its gross margins hitting 86%. 

Some of the other top S&P 500 Index stocks to watch next week are Hyatt Hotels, Cintas, and Progressive. 

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