Top S&P 500 index stocks to watch next week

The S&P 500 index continued its uptrend this week and hovered near its all-time high after the Federal Reserve left interest rates unchanged and as the earnings season continued. 

According to FactSet, 62% of all companies in the S&P 500 index have already published their results. Its biggest constituents like Microsoft, Alphabet, Netflix, and Amazon have all published their results. 

S&P 500 index earnings have been strong

The earnings season has been positive, with 77% of the firms reporting a positive EPS surprise and 63% a positive revenue surprise. The earnings growth of these firms was 16.4%, the highest figure since 2021. 

Therefore, the next key catalyst for the S&P 500 index will be the upcoming US consumer inflation data, which will provide more details about what to expect from the Federal Reserve. Many more SPX index companies will publish their numbers. So, let’s explore some of these firms to watch.

McDonald’s will be the first major S&P 500 company to release its numbers next week. These numbers comes at a time when the stock has remained in a tight range inthe last three months as investors remain concerned about its growth and competition. The average estimate among analysts is that its revenue will be $6.48 billion, representing a 1% YoY growth rate. Analysts expect its stock will rise from the current $294 to $320. 

Coca-Cola (KO) is another big S&P 500 index company to watch next week as it releases its financial results. Like McDonald’s, Coca Cola shares have remained in a tight range in the past few months. It was trading at $64, down by 12% from its all-time. Analysts anticipate the Coca-Cola stock to rise from $63 to $71 and its revenue to drop by 2% to $10.7 billion.

Shopify, Applied Materials, and other stocks to watch

Shopify (SHOP) stock price will be in the spotlight as it publishes its numbers on Wednesday. SHOP was trading at $117, a few points below its YTD high $123. Wall Street analysts expect that its revenues will be $2.73 billion, up by 27% YoY, a sign that the momentum is going on. This is a notable performance for a company that was started almost two decades ago. The average Shopify stock forecast is $121, up from the current $117.

Applied Materials (AMAT) stock will be in focus as the company releases its numbers. These will ne closely-watched as investors assess the growth trajectory of the artificial intelligence industry. The average AMAT stock price forecast among Wall Street analysts is $210, up from the current $180. They also expect its revenue growth to be 6.7% to $7.15 billion.

Credit rating agencies like Moody’s and S&P Global will release their numbers next week as their stocks remain at their all-time highs. 

The other big names that may shake up the S&P 500 index will be Palo Alto Networks, Deere, Duke Energy, Airbnb, Coinbase, Motorola Solutions, Cisco, AppLovin, CME Group, and CVS Health. CVS will likely provide more details about its turnaround strategy.

AppLovin will be in focus because of its strong performance in the past few years. It has jumped by 700% in the last 12 months, making it one of the best-performing S&P 500 index companies. As such, a strong report will likely push its stock higher, while a weak one will lead to a plunge.