Bank of America Names 8 Mid-Cap Stocks for Second Half 2026 as Russell 2000 Surges 20%

According to Bank of America, analyst Jill Carey Hall identified eight mid-cap stocks with potential upside for the second half of 2026, as market focus broadens beyond artificial intelligence. The Russell 2000 index has gained approximately 20% year-to-date, significantly outpacing the S&P 500's roughly 8% advance.

BofA's picks span beauty retail (Ulta Beauty, elf Beauty), home furnishings (Wayfair), biotech services (Charles River Laboratories), software (Dynatrace, Samsara), semiconductor equipment (MKS Instruments), and industrial real estate (EastGroup Properties). The bank emphasizes companies showing operational turnarounds, margin expansion potential, and exposure to AI infrastructure buildout demands.