This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Energy Stocks Loved by Goldman Sachs

BOSTON ( TheStreet) -- There's no stopping the energy sector's juggernaut over the past year, and Goldman Sachs' (GS) analysts say it's not too late to jump on the bandwagon.

A few of the investment bank's list of top buys have potential gains of as high as 42 % in the next six months.

The rapid rise in oil prices have contributed to the outperformance. Oil is selling for about $112 a barrel, up from about $75 in late August due to rising demand in the U.S. in China and global events, such as uprisings in the Middle East and North Africa, that have trimmed production there.

As a result, energy stocks, which include oil, coal, gas and alternative energy, have returned 14% this year and 27% over the past 12 months through April 26, as tracked by Morningstar. The S&P 500 Index is up 7.7% and 13%, respectively.

Goldman Sachs is particularly bullish on the oil industry, which includes everything from exploration and oil-field services to the largest, vertically integrated companies such as ExxonMobil (XOM - Get Report). "Barring an unexpected hit to the world economy such as the housing/financial crisis of 2008-2009, we think oil markets will remain strong at least through 2012," said the Goldman oil-industry report of April 17.

The firm has a "conviction list" of its highest-rated stocks, all of which are rated "buy." It relies on asset-value and cash-flow valuations to set its price targets.

Five of Goldman Sachs' conviction-list "buys" for the energy industry follow (note that their price targets are for six months):

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
PXP $0.00 0.00%
CVE $18.98 0.00%
FSLR $57.34 0.00%
HOS $22.91 0.00%
OXY $80.50 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs