Evercore ISI's refreshed Best Core Ideas list now includes Humana and NRG Energy, both of which offer dividends and are rated outperform by the firm's analysts. Humana's shares have risen over 40% year to date, with a price target of $480 indicating a potential 28% upside.
Analyst Elizabeth Anderson noted that Humana is focusing on profitability in its Medicare Advantage bids, which could enhance its earnings per share if it improves its plan rating from the Centers for Medicare & Medicaid Services.
Meanwhile, NRG Energy's shares fell after the company reaffirmed its earnings guidance, projecting adjusted earnings between $7.90 and $9.90 per share, slightly below the consensus estimate of $9.21.
Analyst Nicholas Amicucci emphasized the value of NRG's integrated flexibility stack, which includes Virtual Power Plants, suggesting that the stock is undervalued with a price target of $215, indicating a 55% upside. Overall, both companies are positioned for potential growth, with Wall Street showing a positive outlook on their stocks