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Tags: goldman | oil | stocks | 2020

Goldman: 9 Oil Stocks to Buy in 2020

Goldman: 9 Oil Stocks to Buy in 2020
(Roman Romaniuk/Dreamstime)

By    |   Sunday, 22 December 2019 06:39 PM EST

Oil stocks have had a pretty dismal year as energy is the worst-performing sector in the S&P 500 and has continued to lag behind even as oil prices have rebounded in recent weeks.

However, Barron’s explained that some analysts are predicting a brighter new year for crude shares.

“The companies that produce oil and gas have begun to change their free-spending ways, emphasizing profitability over production growth. Energy stocks now have the highest average dividend yield in the S&P 500, at 3.8%,” Barron’s said.

Goldman Sachs anaIyst Brian Singer increased his 2020 price target for Brent crude to $63 and $58.50 for West Texas Intermediate, from $60 and $55.50, respectively, “due to more favorable inventories resulting from a deeper than expected production cut by OPEC (we now expect OPEC supply of negative 0.6 million barrels per day year over year versus negative 0.1 million previously),” Barron’s reported.

Singer picked several producers he thinks can outperform in this environment: EOG (EOG), Pioneer Resources (PXD), and Parsley Energy (PE).

Goldman Sachs analyst Neil Mehta also released top 2020 picks in oil and gas, touting Chevron (CVX), ConocoPhillips (COP) and Exxon Mobil (XOM).

Among refiners, Mehta prefers Valero (VLO), Marathon Petroleum (MPC) and Phillips 66 (PSX), which should benefit from new United Nations standards for shipping fuel that should increase demand for higher-margin cleaner fuels, Barron’s said.

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InvestingAnalysis
Oil stocks have had a pretty dismal year as energy is the worst-performing sector in the S&P 500 and has continued to lag behind even as oil prices have rebounded in recent weeks.
goldman, oil, stocks, 2020
224
2019-39-22
Sunday, 22 December 2019 06:39 PM
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