It should be another good year for energy stocks, according to Goldman Sachs. The sector outperformed the S & P 500 by 78% in 2022, and while it is unlikely there will be a repeat of that magnitude, the backdrop is still constructive for energy equities, analyst Neil Mehta said in a note Tuesday.
The stocks with the highest total return are Antero Resources and Cheniere Energy , both at 48%, according to Goldman Sachs. Antero Resources gained a whopping 77% in 2022 and was down nearly 9% so far this year. Natural gas exporter Cheniere Energy gained nearly 28% in 2022, but so far is down around 5% since the start of the year. Cheniere was also named a top conviction pick for 2023 by UBS in December, thanks to its exposure to the under-supplied liquid natural gas industry.
Goldman Sachs says whatever it thinks will most benefit Goldman Sachs. I would recommend taking whatever they say with a boulder-sized grain of salt.