As the second half of 2026 begins, UBS analysts have released their favorite stock picks, emphasizing the strong performance of the market in the first half of the year. The Dow Jones Industrial Average had its best first half since 2021, while the S&P 500 and Nasdaq Composite recorded their largest quarterly gains since mid-2020.
Vertiv, a data center stock, has seen a remarkable 92% increase this year, driven by optimism surrounding its cash flow return on investment (CFROI) and growth rates, with 26 out of 30 analysts rating it as a 'strong buy' or 'buy.' Nvidia, a leader in AI semiconductors, is also favored despite a modest 6% rise in 2026, with analysts projecting significant growth in its Economic Profit.
Ralph Lauren is another stock highlighted by UBS, having gained 13% this year, with analysts noting its recovery in CFROI and potential for long-term growth. Other stocks on UBS's list include Spotify, Boston Scientific, Target, and Coca-Cola, indicating a diverse range of investment opportunities as the market continues to evolve