As the second quarter kicks off, Bank of America is telling investors to keep an eye on a group of stocks that it’s recommending. The first quarter of 2025 was a tough one for the market. Marred by uncertainty resulting from President Donald Trump’s tariff policy and fears that the U.S. economy was slowing and possibly heading for a recession, the S & P 500 closed out the quarter with a loss of more than 4% while the Nasdaq Composite tumbled more than 10%. The Dow Jones Industrial Average dropped a little more than 1%. Volatility continued as the second quarter began Tuesday, one day before the White House announces trade policies tied to what Trump calls ” Liberation Day ” – when the president plans to impose widespread tariffs aimed at substituting U.S.-made goods for foreign products and raising government revenue. Looking ahead, Bank of America unveiled its top U.S. stock ideas for the quarter just starting, naming companies that “could have significant market- and business-related catalysts in the quarter ahead.” Bath & Body Works is also coming off a rough quarter, having fallen nearly 22% over the past three months. That said, it could be due for a turnaround, according to Bank of America. “We think BBWI will continue to benefit in 2025 from underlying momentum in the business, as well as product newness and innovation which should provide a pathway to sales and margin recovery despite a tough consumer backdrop,” analyst Lorraine Hutchinson wrote in a Tuesday note to clients. “We expect BBWI to withstand a consumer slowdown better than peers due to its affordably luxury stance and replenishment model.” Hutchinson has a buy rating on Bath & Body, and her 12-month price target of $45 implies more than 48% upside from Monday’s close. BBWI 3M mountain BBWI, 3-month Ralph Lauren likewise pulled back last quarter, dropping more than 4%, and sliding almost 17% in the past month alone. Analyst Christopher Nardone is getting bullish on the fashion company, assigning it a buy rating and a $318 target, which would translate about 44% upside potential over the coming year. “We expect improving brand heat globally will continue to drive above average sales growth trends (vs peers) and think the company has levers to drive continued margin expansion,” Nardone wrote in a recent note. RL 6M mountain RL, 6-month Goldman Sachs could similarly benefit after suffering a negative quarter. Goldman is down 12% over the past month. Bank of America analyst Ebrahim Poonawala, who has a buy rating on the Wall Street investment bank, anticipates a “strong” trading environment under the Trump administration, setting his share price target at $700. That implies more than 28% upside. “While M & A/IPO activity has had a slow start to the year, we believe any visibility on the policy front could jumpstart deal-making activity over the coming months,” Poonawala wrote.
