In this piece we will look at the 5 Best Mid Cap Value Stocks to Buy in 2026. Please visit 10 Best Mid Cap Value Stocks to Buy in 2026, if you’d like to see an extended list and how we came up with the list of Best Mid Cap Value Stocks.
5. SEI Investments Company (NASDAQ:SEIC)
Number of Hedge Fund Holders: 39
SEI Investments Company (NASDAQ:SEIC) is one of the Best Mid Cap Value Stocks to Buy in 2026. On March 2, SEI Investments Company (NASDAQ:SEIC) presented at the Raymond James conference, where the company highlighted opportunities and challenges.
Management noted that they are focusing on five main areas for growth, including wealth and asset management expansion, data-driven capital allocation, workforce integration, and international returns. The company generates around 85% of its revenue from the US, while the rest 15% comes from international markets. Moreover, management is also focusing on integrating AI tools to accelerate and enhance the company’s services.
Last year, SEI Investments Company (NASDAQ:SEIC) reported $150 million in sales, with significant contributions from its Investment Manager Services. Management noted that this was aided by the Stratos acquisition, which enhanced the company’s investment management capabilities.
Looking ahead, SEI anticipates margin expansion through operational leverage and revenue growth. This expansion is expected to be sustained by ongoing R&D investments in service enhancements.
SEI Investments Company (NASDAQ:SEIC) is an asset management company that provides wealth management, retirement & investment solutions, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services.
4. Allison Transmission Holdings, Inc. (NYSE:ALSN)
Number of Hedge Fund Holders: 41
Allison Transmission Holdings, Inc. (NYSE:ALSN) is one of the Best Mid Cap Value Stocks to Buy in 2026. On March 10, Allison Transmission Holdings, Inc. (NYSE:ALSN) announced a significant expansion of its long-standing partnership with Daimler Truck North America LLC.
The expansion will bring two new Allison transmission options into DTNA’s popular Freightliner M2 106 Plus medium-duty truck, targeting regional hauling, tractors, and vocational uses. The additions include Allison 3414 Regional Haul Series with Cummins X10 diesel engine and Allison 9-Speed with Cummins B6.7 Octane gasoline engine.
Management noted that the 3414 Regional Haul Series is a lighter automatic transmission that boosts acceleration by 25% over competitor automated manuals. Production for this is expected to start in January 2027. On the other hand, Allison 9-Speed is focused on smooth shifts, balanced torque, and fuel efficiency for gasoline-powered fleets facing stricter regulations. Allison 9-Speed is expected to enter the production phase in July 2026.
Allison Transmission Holdings, Inc. (NYSE:ALSN) designs, manufactures, and sells fully automatic transmissions and electrified propulsion systems for medium- and heavy-duty commercial vehicles, defense applications, and off-highway equipment.
3. Baxter International Inc. (NYSE:BAX)
Number of Hedge Fund Holders: 42
Baxter International Inc. (NYSE:BAX) is one of the Best Mid Cap Value Stocks to Buy in 2026. On March 17, Travis Steed from Bank of America Securities maintained a Hold rating on Baxter International Inc. (NYSE:BAX) with a price target of $24.
The rating comes after the S&P downgraded its outlook on the stock from Stable to Negative. The analyst emphasized in a research note that the company needs to avoid further guidance cuts and demonstrate stronger operational performance before justifying a more positive stance. He added that the S&P’s revised outlook assumes only modest leverage improvement alongside a gradual recovery in growth, margins, and cash generation.
The analyst noted that the company’s free cash flow metrics remain below those of BBB- rated peers, which is also one of the reasons behind his Hold rating. Steed added that risks remain for the company regarding the resolution of cost-cutting actions and product challenges, such as Novum. Moreover, key inflection points are not anticipated until 2026–2027, contributing to a balanced risk-reward outlook of the company in the near-term.
Baxter International Inc. (NYSE:BAX) is a global medtech company focused on essential healthcare products for hospitals, surgery, and critical care. The company operates through three main segments, including Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals.
2. DocuSign, Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders: 48
DocuSign, Inc. (NASDAQ:DOCU) is one of the Best Mid Cap Value Stocks to Buy in 2026. On March 18, UBS lowered the price target on DocuSign, Inc. (NASDAQ:DOCU) from $75 to $54, while maintaining a Neutral rating on the stock.
The firm highlighted in a research note that investors are waiting for the software application sector to rebound, as the stock is trading at 8 times its calendar year 2026 free cash flow. The firm also noted that the company has reported 8.2% revenue growth over the past 12-months, along with a profit margin of 79.4%. Moreover, the company sees the full-year 2027 outlook to experience a slight revenue deceleration to around 7%. UBS noted that most of DocuSign’s fiscal Q4 and January metrics were in line with the firm’s estimates.
UBS also noted that 7% growth rate is below the company’s long‑term target of more than 10% growth. The firm highlighted in its research note that the investor sentiment regarding the company is unlikely to change, which suggests that the market is yet to be convinced by DocuSign’s growth story.
DocuSign Inc. (NASDAQ:DOCU) provides an electronic signature and digital transaction management platform that enables businesses to prepare, sign, act on, and manage agreements electronically. It also utilizes AI through its DocuSign Iris engine to enhance its Intelligent Agreement Management (IAM) platform.
1. Builders FirstSource, Inc. (NYSE:BLDR)
Number of Hedge Fund Holders: 74
Builders FirstSource, Inc. (NYSE:BLDR) is one of the Best Mid Cap Value Stocks to Buy in 2026. On March 16, Stifel analyst W. Andrew Carter lowered the firm’s price target on Builders FirstSource, Inc. (NYSE:BLDR) from $115 to $93 and maintained a Hold rating on the stock.
The analyst said in a research note that the firm maintains a positive long-term bias on the stock. However, the firm’s earnings estimates sit at the low end of company guidance. The analyst noted that he is approaching the required growth acceleration in the company’s outlook with caution, as it assumes flat single-family housing starts in 2026. Single-family housing is a key driver for the building products supplier amid ongoing housing market uncertainty.
Builders FirstSource, Inc. (NYSE:BLDR) reported its fiscal Q4 2025 earnings on February 17 and also initiated fiscal 2026 guidance. During the fourth quarter, the company reported a 12.10% year-over-year decline in revenue to $3.36 billion, missing the estimates by $99.15 million. The EPS of $1.12 also missed estimates by $0.16. The revenue was down mainly due to lower core organic sales and commodity price deflation, partially offset by contributions from acquisitions.
The company expects fiscal 2026 net sales in the range of $14.8 billion to $15.8 billion and assumes flat single-family and multifamily starts with a 1% rise in repair and remodel activity. Adjusted EBITDA for the year is expected to be between $1.3 billion and $1.7 billion.
Builders FirstSource, Inc. (NYSE:BLDR) is a leading supplier of building materials and services for professional builders in the residential construction and remodeling industry. It provides an integrated solution for homebuilding, offering products like lumber, trusses, windows, doors, siding, and insulation.
While we acknowledge the potential of BLDR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BLDR and that has 100x upside potential, check out our report about the cheapest AI stock.
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