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5 Energy Stocks That Goldman Sachs Loves

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1. Chicago Bridge & Iron (CBI - Get Report) is an industrial company, providing engineering services and building energy infrastructure for oil and gas companies. Its stock has already gained 21% during 2011.

Goldman, calling CBI "the best story in a late-cycle sector," advises buying on any weakness. It has a 12-month target of $53 on the stock, implying 34% of upside potential. CBI missed Goldman's first-quarter adjusted earnings estimate by a nickel, due to high selling, general and administrative expenses and slower sales growth. The operating margin fell to 7.6%. But $1 billion of new bookings met expectations.

Chicago Bridge & Iron's stock isn't terribly cheap based on peer-valuation metrics, but Goldman expects rapid earnings growth through 2013, hitting $3.40 in that fiscal year, giving the stock a forward earnings multiple of less than 12. CBI is an analyst favorite, garnering "buy" recommendations from 75% of those in coverage, indicating positive sentiment.

-- Written by Jake Lynch in Boston.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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