Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come. Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 82nd on the 2025 Fortune 500 list of the largest U.S. corporations by total revenue.
At 24/7 Wall St., we have followed the company’s research for 15 years to bring our readers top stock ideas. Given the massive rise in oil prices, we were excited to find five energy sector stocks that the Goldman Sachs team remains especially bullish on for the long term, including into the first-quarter earnings results.
The jump in energy company stocks over the past few months, after grinding slowly higher last year, makes some investors nervous about buying shares now at what seem to be sky-high prices. That is why we focused on stocks in three separate energy sub-sectors.
Goldman Sachs is positive on three energy companies heading into first-quarter earnings, including an exploration and production company, a leading refiner, and a top utility operator. All are rated Buy and pay solid, dependable dividends to shareholders.
American Electric Power
American Electric Power (NYSE: AEP | AEP Price Prediction) is one of the largest electric utility companies in the United States, serving more than 5 million customers across 11 states. This industry-leading utility pays investors a reliable dividend yield of 2.78%. It is an electric public utility holding company that generates, transmits, and distributes electricity for sale to retail and wholesale customers in the United States.
The Goldman Sachs team said this in their report:
In our utilities coverage, we are constructive on the shares ahead of the quarter, forecasting an EPS CAGR of over 9% through 2030, compared with ~8% for our coverage on average. We expect a positive update on load growth, which has contracted by 56 GW, and on the potential capex required to serve it, as well as an update on incremental capex opportunities of $5-$8bn, for which management has messaged plans to provide an interim capex update ahead of its 3Q call.
It operates through these segments:
- Vertically Integrated Utilities
- Transmission and Distribution Utilities
- AEP Transmission Holdco
- Generation and Marketing
The company generates electricity using:
- Coal
- Lignite
- Natural gas
- Renewable energy
- Nuclear energy
- Hydro
- Solar energy
- Wind and other energy sources
It also supplies and markets electric power wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants.
The Goldman Sachs price target for the stock is $142.
Permian Resources
Trading at a reasonable 12.7 times forward earnings, with a 2.94% dividend yield, Permian Resources (NYSE: PR) is an independent oil and natural gas company focused on acquiring, optimizing, and developing oil and natural gas properties.
Goldman Sachs noted this in its discussion of the company:
We are constructive on Permian Resources heading into earnings season, given the company’s pure-play Delaware Basin exposure, strong execution track record, and continued focus on incremental capital and cost efficiencies. While Waha pricing has remained more challenging, we highlight PR’s focus on improving realizations through expanded marketing efforts in 2026 compared to 2025.
Permian Resources’ position comprises over 479,500 net leasehold acres and approximately 94,900 net royalty acres across the Permian Basin. Most of its assets and operations are concentrated in the core of the Delaware Basin, in Eddy and Lea Counties, New Mexico, and Reeves and Ward Counties, Texas.
The Goldman Sachs price objective is $23.
Valero
This is one of the safest ways for investors to play the energy sector, as refining capacity has shrunk while supply has increased. Valero Energy (NYSE: VLO) is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels, as well as petrochemical products, and pays a dependable 1.87% dividend.
The analysts had this to say regarding the stock:
Heading into earnings, we are constructive on Valero Energy, mindful of potential capture-rate implications amid the crude environment, but view the company as well-positioned to deliver strong earnings. We also point to management’s ongoing commitment to shareholder returns, as seen in VLO’s ~$5.0 billion and ~$5.4 billion in 2026/2027.
The company sells its products primarily in:
- The United States
- Canada
- The United Kingdom
- Ireland
- Latin America
Valero operates through three segments. The Refining segment encompasses the operations of its petroleum refineries, the associated marketing activities for its refined petroleum products, and the logistics assets that support these operations.
The Renewable Diesel segment encompasses Diamond Green Diesel (DGD) and its associated activities, including marketing renewable diesel and renewable naphtha. The Ethanol segment includes the operations of its ethanol plants and the associated activities involved in marketing its ethanol and co-products.
Valero owns over 15 petroleum refineries located in the United States, Canada, and the United Kingdom.
Goldman Sachs has set a target price of $258 for the stock.
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