Evercore ISI adds Humana, NRG Energy to best core ideas list

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Evercore adds Humana, NRG to core ideas

Highlights

Evercore ISI adds Humana and NRG Energy to its top stock picks list, citing strong dividend themes and sector diversity.
Evercore sets a $480 price target for Humana, implying 28% upside, driven by improved Medicare Advantage margin outlook and profitability focus.
NRG Energy joins the list after a share sell-off, with reaffirmed full-year adjusted EPS guidance of $7.90-$9.90 and a $215 price target indicating 55% upside.

Analyst picks and upside targets

As reported by CNBC, Evercore ISI's latest update brings health insurer Humana and utility-focused NRG Energy onto its list of top stock picks.

Humana shares are up more than 40% year to date and the stock offers a dividend yield of about 1%. Evercore analyst Elizabeth Anderson says increased pricing discipline is materially improving the margin outlook for Medicare Advantage, while the company prioritizes profitability over growth in its approach to 2027 Medicare Advantage bids. Evercore's $480 price target implies 28% upside from Monday's close.

Anderson adds that the next building block for Humana's earnings per share is improvement in its largest Medicare Advantage plan. That could help the insurer regain its 4-star rating from the Centers for Medicare & Medicaid Services.

NRG Energy also makes the updated list after its shares sell off sharply on Tuesday. The move comes after the company reaffirms full-year guidance for adjusted earnings of $7.90 to $9.90 per share, compared with FactSet consensus expectations of $9.21 per share.

Analyst Nicholas Amicucci says investors are overlooking NRG's integrated flexibility stack, especially its Virtual Power Plants, where a mix of energy sources including solar panels and batteries generate and store electricity. His $215 price target suggests 55% upside from Monday's close.

Dividend theme across the list

Both additions fit a broader dividend-paying theme within Evercore ISI's preferred stock selections. The list already includes Chevron, Texas Instruments and McDonald's, giving income-focused investors exposure across energy, semiconductors and consumer sectors.

Chevron is up 25% in 2026 and offers a 3.7% dividend yield. Texas Instruments has gained 64% year to date and yields about 2%, while McDonald's is down 13% this year and offers a 2.8% dividend yield.

In our earlier S&P 500 breakout-level analysis, we explained why traders were watching 7,620 as the key threshold to confirm a sustained move to new highs. We also outlined how a confirmed breakout could influence near-term sentiment and drive sector rotation—supporting areas like technology, healthcare, and financials—while warning that failure to hold above that level could revive selling pressure.

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