Market Trends - Earnings have performed well despite political challenges in the financial services industry, indicating resilience among consumers and companies [1] - The S&P 500 is projected to reach 7,700, representing a 10% to 12% increase from the previous year's close, although no expansion in valuations is expected [1] Investment Preferences - Preference for larger- and mid-cap US stocks over international stocks in a global bull market, with a neutral stance on developed international and emerging markets [2] - Emerging markets are viewed as a cheaper way to gain exposure to technology and AI, but the current moment is not seen as the right time for increased international exposure [2] Stock Recommendations - Webster Financial Corporation (NYSE:WBS) is highlighted as a top large-cap value stock for 2026, with an average upside potential of 16.23% and 52 hedge fund holders [7] - RBC Capital raised its price target for Webster Financial to $72 from $70, maintaining an Outperform rating, citing improvements in loan volume and revenue growth [8] - First Horizon Corporation (NYSE:FHN) is also recommended, with an average upside potential of 16.09% and 52 hedge fund holders, and a price target increase to $27 from $25 by DA Davidson [12] - Strong revenue growth of up to 7% is anticipated for First Horizon due to steady loan growth and improved lending performance [12][13]

Core Insights - CVS Health Corporation (NYSE:CVS) is identified as one of the best large-cap value stocks to buy currently, with a Buy rating maintained by Bank of America Securities analyst Allen Lutz and a price target set at $89.00 [1] Financial Performance - For fiscal Q2 2025, CVS Health reported total revenues of $98.9 billion, reflecting an 8.4% increase compared to the same period last year [2] - The GAAP diluted EPS for the quarter was $0.80, while the adjusted EPS stood at $1.81 [2] - Year-to-date cash flow from operations reached $6.5 billion [2] Business Segments - CVS Health operates in four segments: healthcare benefits, health services, pharmacy & consumer wellness, and corporate/other [3]