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Evercore ISI has refreshed its Best Core Ideas list, spotlighting stocks its analysts rate as outperform with an investment horizon of at least one year. The latest update brings two dividend-paying names into the fold: health insurer Humana and power producer NRG Energy.

Both join a select group of ideas the firm views as core holdings capable of delivering solid returns over the medium term. The additions highlight Evercore’s focus on companies showing operational improvements, strategic positioning in high-demand sectors, and the ability to return capital to shareholders through dividends.

Humana shares have climbed more than 40% year to date, reflecting growing investor confidence in the company’s turnaround efforts. The stock currently yields around 1%. Evercore ISI analyst Elizabeth Anderson set a $480 price target, implying roughly 28% upside from levels near the time of the list update.

Anderson pointed to increased pricing discipline that is materially improving the margin outlook for Medicare Advantage plans. Management has shifted emphasis toward profitability rather than pure membership growth in its 2027 Medicare Advantage bids, a strategy that analysts believe can stabilize and expand earnings power.

A key catalyst remains the potential improvement in the star ratings of Humana’s largest Medicare Advantage plan, known as H5216. That plan currently sits at 3.5 out of 5 stars from the Centers for Medicare & Medicaid Services. Moving higher could meaningfully boost 2028 earnings per share. Anderson noted that with the strong year-to-date performance already reflecting much of the 2026 outlook, the debate now centers on whether Humana can regain stronger star ratings, where analysis suggests upside risk.

Wall Street remains constructive overall: of the analysts covering the stock, a meaningful portion rate it a buy or strong buy, with consensus targets pointing to additional upside, though more modest than Evercore’s view. Recent data shows Humana trading near the mid-$380s range with a trailing dividend near $3.54 annually and forward estimates suggesting continued modest growth in the payout.

NRG Energy entered the Best Core Ideas list after a sharp sell-off triggered by the company reaffirming its full-year guidance. Management guided for adjusted earnings of $7.90 to $9.90 per share against a FactSet consensus around $9.21, while also holding the line on adjusted EBITDA and adjusted net income forecasts that align with street expectations. Shares had already been under pressure, down more than 25% in 2026 at the time of the report, and the stock offered a dividend yield of about 1.6%.

Evercore’s Nicholas Amicucci highlighted what he sees as an underappreciated “integrated flexibility stack.” This includes Virtual Power Plants that combine solar, batteries, and other resources to generate and store electricity. The Texas residential VPP program already exceeds 200 MW against a longer-term 1 GW target. NRG is also advancing 1.5 GW of projects under the Texas Energy Fund, which provides low-cost loans to support new natural gas generation. The first of those, the 415 MW T.H. Wharton facility, reached commercial operations in May 2026 on time and on budget and qualifies for completion bonus grants.

Additional capacity is targeted for mid-2028. Amicucci’s $215 price target suggested substantial upside from the levels seen around the guidance update. Analysts broadly remain bullish, with the large majority rating the shares buy or strong buy and consensus targets implying significant recovery potential. NRG has also progressed its Bring Your Own Power strategy, aligning on commercial terms for a large-scale combined-cycle project tied to hyperscale data center demand.

Beyond the two newest additions, Evercore’s list already features several other dividend payers that illustrate the firm’s preference for companies offering both income and growth optionality.

Chevron has advanced roughly 25% in 2026 and yields in the mid-3% range, reflecting its scale as an integrated energy major with disciplined capital allocation and a long track record of returning cash to shareholders.

Texas Instruments has delivered standout performance, up more than 60% year to date, while still providing a dividend yield near 2%; the semiconductor maker continues to benefit from broad industrial and automotive demand alongside its reputation for consistent capital returns.

McDonald’s, down about 13% this year, offers a yield approaching 2.8% and remains a classic defensive dividend name with global scale, franchise-driven cash flows, and a multi-decade history of annual dividend increases.

Taken together, the refreshed Best Core Ideas list underscores a balanced approach: selective exposure to managed care recovery, power generation positioned for data-center and grid needs, and established dividend compounders in energy, technology, and consumer staples.

For income-oriented investors seeking names with analyst conviction and multi-year catalysts, Evercore’s update provides a timely set of ideas that combine current yields with potential capital appreciation. As always, individual circumstances, risk tolerance, and further due diligence remain essential before any investment decision.

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