US stocks are bracing for volatility as several major events converge, including the earnings season, Federal Reserve decisions, the midterm elections, and the conflict between the US and Iran.
These events come as the S&P 500 and the Dow Jones Industrial Average hover near their record highs. This article highlights some of the top stocks to watch this week, including PepsiCo (NYSE:PEP), Delta Air Lines (NYSE:DAL) and Nvidia (NASDAQ:NVDA).
PepsiCo Stock in Focus as it Plunges Ahead of Earnings
PepsiCo, a top player in the beverage and snack industry, has been in a strong sell-off this year and is now trading at its lowest level since June last year. It has slumped by over 24% from its highest point this year.
The sell-off in PepsiCo’s stock continued in July after the company’s earnings showed that its North American food and beverage divisions weakened in the second quarter. This weakness was offset by strength in the international segment.
Revenue came in at $24.18 billion, slightly above the expected $23.95 billion, while earnings per share of $2.20 fell just short of the expected $2.21.
Analysts expect the upcoming results to show that its third quarter revenue rose by 4.32% to $24.97 billion, while its EPS moved to $2.3 from $2.29 in the same period last year.
Delta Air Lines to Publish its Earnings
Delta Air Lines stock will also be in the spotlight as the company releases its financial results on Friday. The report comes as Delta battles rising jet fuel prices, with the average cost up more than 106% from a year earlier.
The second-quarter earnings showed that its business did well even as the US-Iran war escalated. Its revenue rose to $17.67 billion, higher than the expected $17.53 billion, while its adjusted EPS of $1.56 was also higher than the expected $1.48.
Analysts expect the upcoming earnings to show that its business did well, with its revenue rising by 13% to $18.83 billion. Its EPS is also expected to move from $1.71 in the second quarter of last year to $1.88.
Nvidia Stock in Focus After Hitting All-Time High
Nvidia stock will also be in the spotlight this week after it jumped to a record high last week, when the company unveiled the largest share buyback program on record. Nvidia will now repurchase $150 billion of its shares, on top of the $80 billion program it is currently executing.
The company will also be in the spotlight ahead of key earnings by some of its suppliers like SK Hynix and Taiwan Semiconductor. Also, its top clients like Microsoft, Alphabet, and Amazon will also publish its financial results, providing more color on its demand.
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