Bank of America Names 8 Mid-Cap Stocks Poised for H2 2026 Rally, Led by MKSI

According to Bank of America analysts, the bank identified eight mid-cap stocks with potential in the second half of 2026, including Ulta Beauty (ULTA), ELF Beauty (ELF), Wayfair (W), Charles River Laboratories (CRL), Dynatrace (DT), MKS Instruments (MKSI), EastGroup Properties (EGP), and Samsara (SMSA).

Analyst Jill Carey Hall highlighted that while market focus remains on AI, mid-cap companies in consumer, software, semiconductors, and real estate sectors offer upside potential. MKSI, a semiconductor equipment supplier, is BofA's top pick for H2 2026, having surged 145% year-to-date on expected benefits from wafer fab equipment expansion and AI infrastructure buildout through 2028. For Ulta Beauty, down 20% year-to-date, BofA maintains a $685 price target based on improving profitability. Wayfair, which fell 11% amid inflation and tariffs, is expected to benefit from easing supply chain pressures with EBITDA margin recovery potential.