Eli Lilly and Ralph Lauren included in BofA's 'Top 10 US Ideas for Q2 2025' list

Investing.com -- Bank of America released its Top 10 US Ideas for Q2 2025 note on Tuesday, highlighting stocks the firm believes have significant market and business-related catalysts in the months ahead. 

BofA said the list includes nine Buy recommendations and one Underperform rating.

Among the featured Buy-rated stocks are Eli Lilly (NYSE:LLY) and Ralph Lauren (NYSE:RL), alongside Agnico Eagle (NYSE:AEM) Mines, AMETEK, Bath&Body Works (NYSE:BBWI), Energy Transfer (NYSE:ET) LP, Goldman Sachs (NYSE:GS), RenaissanceRe (NYSE:RNR), and The Trade Desk (NASDAQ:TTD). The sole Underperform rating is for Hims&Hers Health.

BofA noted that the market is currently facing uncertainty around potential tariff announcements scheduled for April 2. “Our Economics team expects a combination of reciprocal and sector-specific tariffs,” BofA said, adding that the base case is a five percentage point increase in effective tariffs compared to pre-election levels. 

BofA’s Strategy team has warned that a worst-case scenario could reduce S&P 500 earnings per share (EPS) by 10%.

The bank believes that Eli Lilly has “potential for outsized growth across the next 10 years.”

“The biggest driver of this is the GLP-1 obesity category. LLY is one of two leading companies that are likely to own the vast majority of the share in the category well into the future because of various 'moats' that should protect their incumbency,” said the bank. 

They also stated that, away from obesity,  the rest of LLY's business is “simultaneously in good shape.”

Meanwhile, the bank thinks Ralph Lauren offers an attractive risk/reward due to the combination of “strong global brand heat, structural margin drivers, a strong balance sheet, and a diversified supply chain.”

“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,” wrote BofA.