As the second half of the year kicks off, a list of favorite stocks from UBS for the third quarter includes Vertiv and Nvidia . The third quarter of 2026 comes after an exceptional first half, when the Dow Jones Industrial Average posted its best first-half performance since 2021. In the three months ended in June, the S & P 500 and Nasdaq Composite scored their largest quarterly gains since the second quarter of 2020. In a note out Wednesday, UBS analysts shared their top stock picks for the third quarter of 2026. Some of the individual names from that basket are shown in the table below: Data center stock Vertiv is an AI infrastructure “picks and shovels” play that has surged 92% this year, through Wednesday. “Investor optimism on VRT has been underpinned by its enviable combination of robust CFROI and high asset growth rates,” UBS wrote, referring to cash flow return on investment, a financial yardstick. “Tailwinds tied to the AI boom persist and consensus estimates suggest that VRT’s upward trajectory in value creation remains intact,” the bank said. Most analysts covering the Ohio-based company are similarly bullish, with 26 investment banks rating it either “strong buy” or “buy,” and only four giving it a “hold.” The average price target suggests upside of about more than 18% from Wednesday’s close. Nvidia, the dominant maker of artificial intelligence semiconductors, is just 6% higher in 2026, but is still a favorite at UBS. “NVDA is an exemplary wealth compounder, earning the highest Economic Profit of any company ever last year and with forecasts indicating a doubling in Economic Profit by 2027,” the bank wrote. “Despite strong value creation from the Vera Rubin platform, the market is pricing CFROI to fade from a forecasted 81% to pre-AI levels of 21% by 2030. Assuming consensus over the next 3 years, NVDA is priced for 7% topline growth with compressed margins thereafter.” Of 63 analysts covering Nvidia, no less than 59 rate the Jensen Huang-led company as either a “strong buy” or buy, while three call it a “hold” and one an “underperform.” Analysts’ consensus price target would equate to upside of more than 50% from Wednesday’s close. UBS analysts also highlighted Ralph Lauren as a favorite stock. The clothing retailer has rallied 13% this year. “Over the past five years, RL’s CFROI has rebounded sharply from pandemic lows, exceeding pre-Covid levels as the company drives structural improvement through brand elevation, reduced discounting and tighter distribution control,” UBS wrote. “CFROI is forecast to reach a decade high of 15%, yet the market prices a fade toward 14% longer-term. Assuming RL can meet consensus estimates for the next 3 years, expectations imply 8% long-term top-line growth.” Other analysts are also bullish on Ralph Lauren, with 17 recommending it as either a “strong buy” or “buy,” and only three saying it’s a “hold.” The average analyst price target implies Ralph Lauren could still climb another 7% from current levels. Other stocks on the UBS list include Spotify , Boston Scientific , Target and Coca-Cola .
These are top stock picks from UBS analysts heading into third quarter
